Strategic Insights
Strategic Insights
Knowledge is power
The deal sourcing community is fragmented.
PE firms see 15.8% of their target market deal flow, per SPS data cited in our latest Deal Origination Benchmark Report.
The DOBR is an annual industry standard comparing a Sponsor’s market coverage against all Sponsors and peer groups. These statistics provide detailed insight into a firm’s deal sourcing strategy and helps clients gauge their performance individually, as well as compared to the industry.
2021 DOBR
The results of the annual SPS DOBR indicate that PE firms see a median of 15.8% of their target market deal flow.
The 2021 edition includes results from 157 qualified PE firms, segmented into 8 different peer groups, eg: Generalist, Quasi-Generalist, and Sector Focused. These groups play a crucial role in contextualizing key takeaways, given the wide variety of deal sizes and industries that SPS clients invest in. Over 60% of SPS clients have at least one dedicated BD professional, with top performers across all 8 peer group having one or more. The awards for Best-in-Class and Top Quartile Originators, as well as the underlying analytics and unique insights, are often leveraged for fundraising efforts and LP discussions. The sell-side process metrics allow PE firms unparalleled granularity into their coverage of limited processes versus broad auctions, along with how to improve it going forward.
2020 DOBR
According to the results from the 2020 SPS annual DOBR, on average, PE firms see 17.4% of their target market deal flow.
2019 DOBR
The results of the annual SPS DOBR indicate that PE firms see a median of 18.8% of their target market deal flow.
2018 DOBR
According to the annual SPS DOBR, PE firms see a median of 17.2% of their target market deal flow.
2017 DOBR
The results show that, on average, PE firms see 16.6% of their target market deal flow.
- Summary Statistics
- Sample PE Firm Generalist
- PE Hub: PE firms see only low percent of boutique-adviser-advised deals
2016 DOBR
The results show that, on average, PE firms see 18% of their target market deal flow.
2015 DOBR
The results show that, on average, PE firms see 19% of their target market deal flow.
- Summary Statistics
- Sample PE Firm Generalist
- PE Hub:Deal source pros key to producing top-quartile market coverage
2014 DOBR
The results show that, on average, PE firms see 19% of their target market deal flow.
The perspective focuses on market trends and transaction in the mezzanine space and is released quarterly. It also provides data pertaining to transaction activity on a quarter-by-quarter basis going back to Q1 2012.
Q1 2022
Mezzanine activity for the LTM period ending December 31st increased approximately 58% YoY from 244 deals to 385 deals. Compared to the previous quarter (Q3 2021), deals including mezzanine debt increased from 87 to 128 in Q4 2021. The increase in mezzanine deal activity correlates with the increase of private equity sponsored deal volume, which increased nearly 19% from 1,500 deals in Q3 2021 to 1,781 deals in Q4 2021. Out of the 128 mezzanine deals that closed in Q4 2021, 73 deals were sponsored buyouts, 22 were minority financings, 26 were sponsor-backed add-ons, and 7 were recapitalizations. The most common industries in total M&A activity for the quarter were IT, Services, Healthcare, and Financial, respectively.
Q4 2021
Mezzanine activity for the LTM period ending September 30th increased approximately 22% YoY from 252 deals to 307 deals. Compared to the previous quarter (Q2 2021), deals including mezzanine debt decreased from 91 to 75 in Q3 2021.
Q3 2021
Mezzanine activity for the LTM period ending June 30th increased just under 3% YoY from 276 deals to 283 deals. Compared to the previous quarter (Q1 2021), deals including mezzanine debt increased from 69 to 88 in Q2 2021. Although mezzanine deal activity increased, there was a slight decline in private equity deal volume, which decreased from 1,372 deals in Q1 2021 to 1,361 deals in Q2 2021.
Q2 2021
Mezzanine activity for the LTM period ending March 31st decreased 30.3% YoY from 323 deals to 225 deals. Compared to the previous quarter (Q4 2020), deals including mezzanine debt increased to 67 from 66 in Q1 2021. Although mezzanine deal activity increased, there was a decline in private equity deal volume, which decreased 5.97% from 1,423 deals in Q4 2020 to 1,338 deals in Q1 2021.
Q1 2021
Mezzanine activity decreased 28% YoY in 2020 from 322 deals to 233 deals. Compared to the previous quarter (Q3 2020), however, deals including mezzanine debt increased 20% from 55 to 66 in Q4 2020.
Q4 2020
Mezzanine activity for the LTM period ending September 30th decreased 29% YoY from 338 deals to 241 deals. Compared to the previous quarter (Q2 2020), deals including mezzanine debt increased 57% from 35 to 55 in Q3 2020.
Q3 2020
Mezzanine activity for the LTM period ending June 30th decreased 28% YoY from 425 deals to 305 deals. Compared to the previous quarter (Q1 2020), deals including mezzanine debt decreased 61% from 89 to 33 in Q2 2020.
Q2 2020
Mezzanine activity for the LTM period ending March 31st decreased 14.6% YoY from 357 deals to 305 deals. Compared to the previous quarter (Q4’19), deals including mezzanine debt decreased about 4.2% from 72 deals to 69 in Q1’20.
Q1 2020
Mezzanine activity for the LTM period ending December 31st declined 20.1% YoY from 388 to 310 deals. Comparing Q3 ’19 to Q4’19, deals including mezzanine debt fell from 82 deals to 69, a drop of about 15.6%.
Q4 2019
Mezzanine activity for the LTM period ending September 30th declined 11.9% from 370 to 326 deals when compared YoY. However, after the past few quarters of consecutive slight declines in the number of deals, mezzanine activity increased in Q3’19 by 17.5% from Q2’19.
Q3 2019
Brookside Mezzanine Partners provided equity and mezzanine financing in support of Branford Castle’s acquisition of ABC Industries, a manufacturer of industrial and mining ventilation products. TCF Bank provided senior debt for the transaction, which closed in August. Capstone Headwaters was the financial advisor to ABC.
Q2 2019
Midwest Mezzanine partnered with MC Controls in May to acquire Dorsett Technologies, a provider of Supervisory Control and Data Acquisition systems used to monitor, secure and control water, wastewater, stormwater, and energy infrastructures. Bundy Group provided sell-side advisory services to Dorsett Technologies.
Q1 2019
Borgman Capital acquired cheese producer Gilman Cheese Corp. Tecum Capital Partners provided subordinated debt and equity in support of the transaction.
The SPS Harvest Report is an annual customized report detailing all PE portfolio companies that may be ready for exit. It is a great resource to proactively target relevant companies that may be in a position to sell in the near term.
July 2019
The July 2019 Edition highlights 5,600+ PE portfolio companies that were acquired between 2012 – 2016 that are potentially ready to exit!
Harvest Report: July 2019 Edition Summary
Harvest Report: July 2019 Advisors & Lenders Edition
- Companies reviewed: 5,300+ PE portfolio
- Originally acquired: 2011 – 2015
- Companies reviewed: 4,600+ PE portfolio
- Originally acquired: 2010 – 2014
- Companies reviewed: 3,560+ PE portfolio
- Originally acquired: 2010 – 2013
Our latest analysis, reports, and presentations on active intermediaries, deal sourcing, and mezzanine activity.
PE Webinar – Finding Lucrative Deals in a Fiercely Competitive Market
SPS 2022 Deal Sourcing Playbook
PE Webinar – Winning Origination Strategies for a Dynamic 2022
PE Webinar – How Top Originators are Gearing Up for 2022
PE Webinar – How to Win Top Deals in Consumer, Business Services
PE Webinar – Winning Strategies for a Deal Boom
PE Webinar – Origination Strategies to Win More Deals
PE Webinar – Deal Sourcing Tactics and Opportunities in a Shifting M&A Market
PE Webinar – Sourcing Strategies for
Uncertain Times from ‘Best in Class’ Deal OriginatorsPE Webinar – Sourcing Strategies for ‘Best in Class’ Originators
PE Webinar – Top Tactics in Deal Sourcing to Finish the Year Strong October 2019
PE/VC Webinar – SPS: New Techniques for Measuring and Boosting Deal Flow June 2019
SPS Walk & Talk Vlog April 2019
Navatar Webinar – SPS: Data Analytics and Technology is Reshaping Private Equity Deal Sourcing. Don’t Be Left Behind! November 2018
Navatar Webinar – SPS: How to ‘Moneyball’ your PE Deal Sourcing December 2017
SPS Presentation SBIA Southern PE Conference Mar 2017
SPS Presentation Buyouts Insider Deal Sourcing Webinar July 2016
AM&AA 2016 Winter Conference State of the Market Panel Presentation Jan 2016
SPS Presentation Summit for Middle Market Funds Oct 2015
Buyouts East-Boston ACG Mar 2015
SPS Presentation 2014 M&A Market Participants
SPS Keynote Presentation Capital Roundtable BD Conference Nov 2014
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