The M&A industry, particularly middle-market transactions, continues to surge thanks to the supply of low- and high-yield debt, an abundance of dry powder, low interest rates and soaring valuations. So far this year, 35,128 global transactions have been announced, which is a 24% increase over last year.
One contributing factor for this jump is the supportive debt environment. Industry market intelligence shows that M&A-related leveraged loan issuance stood at a record level in the first half of the year and is expected to continue reaching record highs.Â
The combination of economic and operating recoveries, monetary policy commitments to maintain asset purchases and low rates, and a growing private debt market are all supporting the improved credit outlook and confidence in funding conditions that will continue to drive M&A.
Principals at Taureau Group understand the changing capital market dynamics and industries driving activity, and we can react accordingly to achieve our client’s specific objectives.
Drivers behind the M&A market remaining active and at all-time highs
Available capital: Private equity dry powder is $1.7 trillion; U.S., non-financial, corporate cash is $4 trillion
Limited supply: High quality companies are strongly desired and provide greater options, and increased negotiating leverage
Growth initiatives: M&A allows access to new markets, services, geographies, capabilities, diversification, etc.Â
Available debt: Pricing and leverage levels remain favorable, and private debt capital market growing
Robust valuations: Values remain strong for high quality companies
Taureau Group provides the market reach to achieve outstanding results for companies looking to grow their business or maximize value through a sale or recapitalization. If you are considering selling or looking for ways to grow, we are here to help. Our team can discuss your objectives, answer any questions you may have, and develop and execute an ideal M&A strategy.
