Mastering The Market
A Comprehensive Guide to M&A Strategies & Insights
Welcome to our comprehensive guide on market timing in the M&A landscape. Providing knowledge into the crucial aspects of due diligence, starting from its fundamental importance to navigating the complexities of the middle market. Through insightful industry reports, we analyze the current M&A outlook, offering valuable perspectives for both seasoned investors and newcomers. Join us as we explore the strategic implications of timing in M&A transactions and uncover key insights to inform your decision-making process.
Healthcare Services Private Equity Industry UpdateIn April, we published our 2024 Global Healthcare & Medical Industry Report, which covered the surging value of the healthcare market and the positive expectations regarding M&A activity and deal value for this year. As we move further into the year, we are seeing more positive private equity trends and investment strategies for the healthcare services industry, as dealmaking is now beginning to pick up momentum following a bit of a decline in Q2 of 2024. Investment pipelines are starting to build up at the same time that seller expectations are being tempered.Middle Market Business UpdateMiddle-market companies represent significant growth opportunities for the global economy. It is a rapidly growing, dynamic, and resilient part of the economy, defined by businesses with between 50 and 250 employees. The middle market is responsible for more than 20% of commercial spending worldwide. Energy & Power Spotlight: Global Transformer Industry ReportA vital segment of the energy and power industry, the global transformer industry grew at a compound annual growth rate (CAGR) of 6.7% from $89.31 billion in 2023 to $95.32 billion in 2024. The sector is on pace with a CAGR of more than 6.5% between this year and 2029.2024 Global Bakery Products Industry ReportThe global bakery products market was valued at $536.4 billion in 2023 and is forecast to reach $734.5 billion by 2030. That is a compound annual growth rate (CAGR) of 4.6% for the seven years.What Is ‘backlog’ And Why Does It Matter?In financial terms, backlog can refer to several factors. It can pertain to a company’s workload buildup, whether financial paperwork must be completed, a backlog in sales order fulfillment, or production capacity. Sectors that commonly deal with backlog include manufacturing, software development, and construction. The Surge of M&A Activity in the Electrical and Energy IndustryThe U.S. electrical grid, often heralded as "the greatest machine in the world," is at a pivotal moment in its history. Initially constructed in the mid-20th century, this vast network faces unprecedented pressures. The rapid advancements in technology—such as artificial intelligence and self-driving cars—alongside the growing adoption of electric vehicles and renewable energy sources are placing new and substantial demands on the nation's electric system.
Navigating The Path Of A Business Sale: Turning Options Into Informed Choices
As a business owner, you've poured your heart and soul into building your company. The day might come when you consider selling your business, but the journey from contemplation to transaction is far from straightforward. One of the most powerful realizations in this process is that while you may be considering multiple avenues for a potential sale until you have offers, these remain options. Until you have a choice to sell, the only real choice you have is to continue running your business just as you did yesterday. However, strategically exploring the market and engaging with various buyer types can transform your myriad options into informed choices.
2024 Hospital and Health System M&A Remains ActiveIn the first quarter of 2024, we witnessed a significant rise in hospital and health system M&A deals compared to the previous three first quarters. This level of M&A activity is expected to continue to climb throughout 2024 and into 2025, mainly due to financial distress situations and hospitals’ goals to improve strategic business areas such as value-based care and digital healthcare services. Academic health systems were also more active in making deals in Q1. Large health systems, for-profit and non-profit, continue to realign their portfolios. Q1 2024 saw twenty M&A deals announced, making it the highest Q1 total since Q1 of 2020 when 29 deals were completed. Such a large number of transactions compared to 2021-2023 shows that specific concerns of the past few years are waning, such as financial uncertainty after the pandemic, inflation, and staffing and volume issues. Hospitals and health systems are now more concerned with missing out on critical opportunities to grow market share by joining forces with the right partner. Inflation is also pushing some organizations to make M&A deals, focusing solely on survival and profitability. In this dynamic environment, the major hospital and health system players are strategically seizing opportunities to acquire organizations facing financial difficulties, thereby enhancing their portfolios. Health systems will also likely pursue more considerable cross-market merger opportunities to bolster their businesses without significant regulatory challenges. The focus is on mid-sized and smaller institutions that can bring strategic value to the table. Some of the most prevailing trends driving M&A activity in the hospital and health system industry include the impact of artificial intelligence on pharmaceutical development, the race to bring GLP-1 assets to market, strategic consolidation of healthcare systems, a greater focus on precision medicine, and the acquisition of niche MedTech solutions to expand and diversify capabilities. Private equity firms and venture capitalists also want to move into the hospital and health system space. Academic health systems continue to have high occupancy rates, and building a network of quality community hospitals allows higher academic organizations to outsource patient care to the community setting. This relieves occupancy pressure at the academic flagship while expanding residency opportunities, clinical research programs, and community hospital access to tertiary and quaternary care. New partnership models are emerging in the hospital industry, forming part of a comprehensive plan. For instance, one objective is to enhance population health by adjusting access to value-based care and coverage within health systems. Other goals include providing guidance to health systems on how to better deploy technology and develop interoperability models for tech solutions. An additional aim is to acquire and operate a health system to create a blueprint for digital transformation in the sector. Many players are banking on value-based care to offer a more sustainable path to healthcare delivery, a shift from the previously popular fee-for-service model. This theory is reinforced by the entry of more large retailers like Amazon into the sector. In fact, more and more non-traditional healthcare companies are responding to shifting consumer preferences and disrupting care delivery with innovative solutions. Another area of activity is management services companies partnering with specialty physician groups to help improve the group’s ability to serve patients, better utilize space, and provide assistance with certain administrative functions. Supply chains are also a driving factor in the decisions hospitals and health systems make. As organizations become more prominent, their supply chain needs to become more strategic. There is more emphasis on lowering non-labor expenses while improving technology, integration efforts, and a transparent supply chain journey. Experts in the sector believe that more strategic partnerships will occur shortly. These mergers combine two organizations doing well but still need complementary resources, capabilities, or intellectual property. Scale and market presence are becoming less critical, while the ability to deliver new healthcare delivery solutions is becoming more of a priority and motivating factor for M&A deals. There is growing emphasis on the ability to excel in value-based care and digital healthcare delivery. Additionally, some health systems will still face financial challenges, with ongoing distress leading to more deals. Hospitals and health systems can be expected to be more selective about who they partner with based on capabilities and resources that fit their particular needs rather than just trying to grow their physical presence and footprint. Global Semiconductor Machinery Manufacturing Industry ReportSemiconductors power many different types of electronics, which have become critical components in an era where more and more products rely on connected technologies. The production of semiconductors involves companies that design the chips, manufacture them, and supply the needed technologies, materials, and machinery. Insight for Business Owners: What’s Going on With Private Equity this Summer?According to a recent webinar hosted by accounting firm PWC, the amount of cash presently held by and committed to private equity funds is at an all-time high. Due to hesitancy shown by fund managers in 2023, cash accumulated rapidly, and the limited partners who provided that cash and those commitments, such as insurance companies and pension funds, are pressuring the private equity management companies to invest that cash or release those commitments. 2024 Consumer Retail Spotlight: Global Pet Tech Industry ReportExplore the booming global pet tech industry, driven by pet owners' desire to humanize their furry companions with cutting-edge monitoring devices, GPS trackers, and innovative health solutions.2024 Construction Spotlight: Global Hvac Industry ReportThe construction industry is growing significantly worldwide, especially in developing countries. As a result, there is a rising demand for Heating, Ventilation, and Air Conditioning (HVAC) systems in residential, commercial, and industrial sectors. This growth is being driven by ongoing urbanization and infrastructure development. 2024 Global Roofing Industry ReportThe global roofing market is growing at a compound annual growth rate (CAGR) of 3.7% from $267.64 billion in 2023 to $277.42 billion in 2024. This growth can be attributed to growth within construction and real estate, urbanization trends, climate and weather, architectural styles and trends, and the need for maintenance and replacement.
2024 Robotics Industry ReportThe global robotics market was valued at $46 billion in 2023 and is forecast to grow at a compound annual growth rate (CAGR) of 15.1% to reach $169.8 billion between 2024 and 2032. 2024 Global Education And Government Industry ReportThe global government education market was valued at $558.49 billion in 2023 and is forecast to grow at a compound annual growth rate (CAGR) of 17.8% between 2024 and 2030.The Biggest M&A Trends For 2024This year, there is a great deal of optimism for M&A dealmaking for several reasons. Financial markets are improving as inflation slows, and interest rates are expected to see much-anticipated cuts. There is also a pent-up demand for deals, combined with an excellent supply of deal availability. Additionally, many businesses have strategic needs to evolve and remain competitive; for these companies, M&A deals can be their best friend. And while mega deals may be down this year, small and mid-size deals are where the action can be found.2024 Global Healthcare & Medical Industry ReportAccording to Verified Market Research, the global healthcare market will reach $665.37 billion by 2028. The healthcare sector is primarily segmented into pharmaceuticals, services, devices, and others. By application, the industry is categorized by cardiovascular, oncology, anti-infection, central nervous system, respiratory, and others.2024 Global Real Estate, Lodging & Leisure Industry ReportDiscover the vibrant landscape of the global real estate market in 2024, boasting a robust growth trajectory with revenues surging from $4.02 trillion in 2023 to $4.31 trillion.2024 Global Environmental, Waste & Recycling Industry ReportThe waste recycling services market has grown from $58.53 billion in 2023 to $62.22 billion in 2024 at a compound annual growth rate (CAGR) of 6.3%. Such historic growth can be attributed to: