Mergers and acquisitions professionals tend to rave about how 2015 was a spectacular year for their practices. By all accounts, 2016 should shape up as another strong year, particularly as banks compete for deals and private equity firms still have plenty of dry powder to deploy. Also bolstering the current market, at least for sellers: Corporate balance sheets remain healthy, and valuations should continue to hold steady at their current elevated levels.
According to John Kerschen, Managing Director, Charter Capital Partners, "With the amount of capital that’s still out there in the marketplace, even if the economy comes down, it’s still going to be providing a bit of a floor for the valuations. Private equity still has the capital. They still need to get it deployed. They’re still going to be searching for places to give it."
But when asked for their forecast beyond this year, industry professionals MiBiz gathered for a roundtable discussion on M&A say their view is foggy at best. As such, they said the window of opportunity for sellers could start to close in late 2016. more