New York, January 26, 2022 – SPS sponsored a webinar on Wednesday, January 26th titled, Winning Origination Strategies for a Dynamic 2022, moderated by David Toll of Private Equity Career Week.
CEO of SPS, Nadim Malik, joined Kelly Lineberger of Ridgemont Equity Partners, Larissa Rozycki of Harris Williams, and Adam Stormoen of Cascadia Capital for a 75-minute discussion on projected trends for deal sourcing in 2022. The panelists presented best practices for using the latest technology, tracking metrics and marketing tactics to make more short lists and win more transactions in 2022.
Malik evaluated the state of the M&A market in Q1 2022, beginning with the boom in annual M&A deal volume seen in 2021. According to SPS data, PE deal activity increased 36% from the same period in 2020 and – for the first time ever – PE activity represented the greater share overall M&A activity. The trend toward buy-and-builds and rollups has continued to grow in 2021, with PE firms completing 2.3 add-ons per platform this year. The Service, IT, Healthcare, and Industrial sectors have led the way in Sponsor activity, while activity across all sectors have increased compared to last year. While deal flow in Q3 2021 was the highest ever on record, Q4 numbers have taken a downturn. Carlyle Group and Audax Group were among the most active firms in terms of both new platform investments as well as exits last year. Privately held companies continue to represent over 60% of all new platform investments made by all PE firms. Data shows an emerging trend in PE exits, with 37% of these going to corporate buyers and 63% to PE firms in 2021 – a trend that will likely continue in order for sellers to keep up with buyer demand as more PE holdings come to market.