As countries continue to experience increasing levels of inflation globally, impacts are being felt across all industries with rising spend across labor, materials, transportation, and manufacturing. In the U.S., the Consumer Price Index (CPI) increased from 2.6% to 8.6% from March 2021 to May 2022, with no near term expectation of returning to the Federal Reserve’s target level of 2%. Businesses and consumers are being forced to make difficult day to day and long term decisions, with the impacts of inflation permeating through many facets of business, and could have an effect on M&A activity in 2022 and beyond.
Middle Market M&A Update: Q3 2022