New York, April 21, 2022 – SPS sponsored a webinar on Thursday, April 21st titled, Finding Lucrative Deals in a Fiercely Competitive Market, moderated by David Toll of Private Equity Career Week.
CEO of SPS, Nadim Malik, joined Steve Hunter of TM Capital, Nicole Kiriakopoulos of Align Business Advisory Services, and Ashley Kooyenga of McNally Capital for a 75-minute discussion on tactics to increase target market deal flow in the current M&A market environment. The panelists covered geopolitical factors impacting deal opportunities for sponsors, tactics for using technology and social media to see more deals from your most relevant deal sources, and strategies for tapping new sources of deal flow.
Malik evaluated the state of the M&A market in Q2 2022, beginning with the boom in annual M&A deal volume seen in 2021. According to SPS data, PE deal activity increased 47% from the same period in 2020 and – for the first time ever – PE activity represented the greater share overall M&A activity. At the time of the webinar, data showed Q1 deal volume was down 7% than the same period in 2021, though it was still the second-highest Q1 on record over the past decade. Recent years’ trend toward buy-and-builds and rollups has accelerated during Q1, with PE firms completing 2.9 add-ons per platform so far this year. Median sponsor deal flow in Q1 was the highest on record for this period, which may point to robust deal closing activity in the quarters ahead. Using the Industrials sector as a proxy, Nadim demonstrates how SPS users can get a 360-degree view of their target segment ecosystem by drilling down to the most active deal sources, lenders, and competitors in a given space. Of 916 total active intermediaries in 2021, 68% closed 3 deals or less, over 160 sold a business for the first time, and over 270 that were active in 2020 did not close a single deal in 2021. With the return of business travel the M&A industry is seeing this year, firms can use the SPS suite of travel planning features and Mobile App to meet with the most relevant deal sources and maximize their productivity during trips. SPS has upgraded our database of over 90,000 private equity and M&A transactions to a new industry taxonomy, with over 140 industries and over 560 sub-sectors for an unmatched level of accuracy and granularity in deal sourcing analytics.