2021 Reflection and 2022 Insights
As we recently published our 2021 deal services year in review, I wanted to take a moment to reflect on this amazingly successful year and provide some insights for 2022.
- 100% deal services volume growth – we adapted and worked together to serve our clients in the most active M&A market in history. 514 deals with a total transaction value of $9.2 billion was a record year for the CLA deal services team. Thank you to all of our team members who worked hard to help our clients and drive the CLA Promise.
- While we don’t expect to double again in 2022, we are bullish on continued M&A growth, specifically in the middle and lower middle market. Private equity fund raising continues to remain high, and our baby boomer business owner clients will continue to need exit strategies. We’re currently fielding sell side inquiries from our clients on a daily basis. These macrotrends should continue to drive significant M&A activity in 2022 and beyond.
- Private equity remains hot as an investment asset class. Investors are continuing to look for alternative strategies to drive excess returns. As competition increases for quality assets, we’re seeing fund managers explore markets that didn’t typically see significant private equity activity historically, including –
- Smaller deals – we’re seeing higher activity in the sub $5m EBITDA market for both new platforms, roll-up strategies, and add-on acquisitions.
- New industries – private equity typically stayed away from cyclical industries like agriculture and construction, but we’re seeing more activity in these segments as managers look for alternative strategies.
- “The Great Resignation” continues to create challenges for our clients. Most businesses likely won’t be able to solve their problems through hiring. Technology investments will be required to allow businesses to do more with less. Digital transformation and data analytics strategies can help businesses automate processes, create efficiencies, and identify profit generating opportunities.
Thank you to all of our clients and relationships who helped make 2021 a great year. We look forward to serving you and helping create value in 2022 and beyond!
How We Can Help
CLA’s private equity team can help you throughout your entire investment life cycle. Our teams provide fund, deal, portfolio, and private capital services to private equity firms and other investors in the middle market.
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Tyler is a principal on CLA's private equity team and provides consulting, assurance, and tax services to private equity groups, portfolio companies, and other closely held private businesses in the manufacturing, distribution, technology, retail, healthcare and business services industries with both domestic and international operations. He specializes in helping clients maximize value and reduce risk during M&A transactions through quality of earnings assessments, working capital analysis, and transaction structuring. He also assists in the oversight of private equity portfolio services, including financial statement assurance, tax, and post-acquisition integration. Outside of work, Tyler enjoys backpacking, hiking, camping, skiing, and other outdoor activities with his wife (Kelly), son (Morrison), and daughter (Arrow).
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