Middle Market M&A Update: Q1 2024
The challenging dynamics of the M&A market over the last year, from tightening credit conditions, financial sponsors pulling back on exits in portfolio investments, and difficult public markets have all led to a renewed focus on a key pool of assets: Privately-Held Companies (1) (“Nonbacked”). As we’ll see throughout this article, this critical asset class of Nonbacked companies are continuing to grow in terms of volume and increasingly making up a significant portion of the overall M&A market. That being said, founders and privately-held business owners should begin to address the key question of: “When the time comes, how well prepared are you and your business for a potential ownership transition?”