Highlights from ACG InterGrowth 2022
The premier deal making conference in the middle-market made its triumphant return with ACG InterGrowth 2022 emerging bigger and stronger than ever. We were able to customize experiences more than ever which allowed the event to cater to every and anyone conducting business in the middle market. ACG InterGrowth remains the foremost destination for all aspects of the deal life-cycle – from fundraising to exiting.
After a busy week at the Las Vegas conference, it was clear the M&A market is alive and well. Nearly 600 private equity professionals and more than 400 investment bankers attended, in addition to many attorneys, accountants and bankers focused on the market. Below are a few of the highlights we took away that leave us with a positive outlook on M&A in the near future.
- The deal market was very active last year and paused ever so slightly this year before resuming at a good pace. Shareholders of private companies considering a sale will find a very busy, and receptive, audience.
- Many private equity groups at the conference were in the process of raising additional funds. Consequently, there will be even more capital chasing deals this year and beyond.
- Family offices, groups established to manage an individual family’s wealth, were represented in greater numbers and represent additional capital sources. Many of these groups were seeking direct investment opportunities to supplement their positions with private equity groups. Sellers should consider this group along with traditional strategic buyers and private equity firms.
- Add-on acquisitions, which are those made by private equity portfolio companies, were a big topic of conversation. Investors are looking to grow their investments through acquisitions. Growth translates into higher valuations and provides shareholders of smaller companies with liquidity alternatives.
- Many investors are looking for ways to grow revenue and professional their business to be more profitable and scalable. Digital transformation and Cyber matters were critical strategies for these investors.
- We did not hear much about moving supply chain and productions from Asia to the USA, but we did hear a lot about looking to Mexico and other locations near the USA.
- Given the number of potential acquirers, finding the right one will continue to grow in complexity. Private equity groups target different industries, company sizes and transaction types. Professionals assisting their clients must manage this complexity to serve clients and provide value.
The current M&A market is healthy despite recent rumblings in the public markets. Things can change quickly, but, for the time being, the private equity investors are raising funds looking to deploy capital and owners of privately held businesses seem to welcome the opportunity to sell their businesses.
Craig Arends is a principal at CLA and is the managing principal of CLA's private equity practice. Craig brings a concentration of experience in providing accounting and transaction structuring advice for leveraged recapitalizations, purchase accounting and SEC reporting, assessing quality of earnings, and GAAP accounting. He has far-reaching experience with critiquing financial models and reviewing target companies' financial performance to identify cost reductions and/or operating efficiencies Craig has more than 30 years of experience in public accounting serving public companies, private equity groups, and companies, including a term as principal in charge of a Big Four Capital Markets Group in Moscow, Russia. He has led financial accounting due diligence projects for private equity investor groups and venture capital funds, primarily in the technology, communications, and manufacturing industries, as well as assisting with Foreign Corrupt Practice Act matters ranging from investigation of payments made, validation of compliance with corporate policies, and review of proposed transactions to ensure compliance. When not working, Craig enjoys watching any sports, but his most favorite are baseball, football and soccer.
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