The Science of Deal Sourcing 101 – 10th Edition: A Market in Flux
Investor sentiment around private equity deal activity continues to paint a mixed picture. Economic uncertainty, higher-for-longer interest rates, and geopolitical tensions have created an environment of heightened caution. While the two-year decline in deal activity appears to be leveling off, the rebound remains sluggish.
The State of Dealmaking in the Middle Market
SPS by Bain & Co.’s 2024 Deal Sourcing Databook has captured the highs and lows of private equity activity in the last five years, from doldrums in the first year of the COVID-19 pandemic, to heady activity from pent-up demand the following year to another slouch once central bank rates began rising in 2022.
Industry Snapshot: Electrical Equipment
This month’s Industry Snapshot hones in on the Electrical Equipment and Electronic Components & Automation Industry. Looking at M&A deals for Electrical Equipment, there was a YoY decrease of 13.4% from LTM April 2023 and another decrease of 22.3% in LTM April 2024. Of deals completed, 58% went to PE buyers while 42% went to corporate buyers. Buyouts comprised the bulk of deal types at 46% with add-ons accounting for 41% of deals. In terms of sub-industry activity, deal volume decreased from April 2023 to April 2024 in nearly all segments, except for an increase in the Electrical Components and Heavy Electrical Equipment sub-industries. Lincoln International, Generational Equity, and Robert W. Baird came in at the top three for Sell-Side Intermediaries.
Seizing the Green Wave: Private Equity’s Opportunity in the Clean Energy Transition Market
Renewables and the clean energy transition have emerged as prime investment avenues for private equity investors, marking a significant upward trajectory over the past decade and with expectations for continued growth in the years ahead. As Hugh MacArthur, chairman of the private equity practice at Bain & Co. indicated, “We are already seeing a substantial increase in things like energy transition… an area that a lot of investors are going to pile into as an attractive space.”
