Real Deals | Adapting to the Dealmaking Drought
Sep 2023
Originally posted by Real Deals on September 26, 2023.
2023 has seen slower deal activity across Europe and many are hopeful that the market will pick up in the near term. In a recent article, Real Deals discussed the state of the middle market deal environment with key players.
The transactions that close have multiples which are holding up well. On the leverage side, multiples are tailing off slightly and sponsors must bring more equity to get deals done.
The slower market has caused an increased demand from both sponsors and lenders. Creative solutions, such as preferred equity, earnouts and payment-in-kind toggles, that can help save money are also becoming more prevalent.
Richard Olson, Managing Director in Lincoln’s Valuations & Opinions Group, commented, “There’s a lot more refinancing taking place. GPs are extending maturities with existing lenders for 18-24 months, which lessens the pressure on the GP with respect to having to execute a deal at a lower multiple.”
Summary
-
Lincoln International’s Richard Olson discusses the state of the middle market deal environment with Real Deals.
- Sign up to receive Lincoln's perspectives
Contributor
Meet Professionals with Complementary Expertise
I enjoy the opportunity to provide clients with insightful and unbiased advice that will help them make the most informed decisions possible.
Ron Kahn
Managing Director & Co-head of Valuations & Opinions
Chicago
Related Perspectives
Investors in Healthcare | Q&A with Lincoln Professionals
Originally posted by Investors in Healthcare on July 25, 2024. Lincoln International, the U.S.-headquartered global investment banking advisor, is a well-known name in the European healthcare markets, providing advice to… Read More
In the Headlines: Q1 2024 Lincoln European Valuation Insights
Lincoln International’s Valuations & Opinions Group recently shared findings from its proprietary European valuation insights with several publications. Bloomberg Private Debt Investor Prequin
Webinar | Valuations & Opinions Group Q2 2024 Private Market Webinar
Thank you for your interest in Lincoln’s Webinar: Valuations & Opinions Group Q2 2024 Private Market Webinar. All request submissions will be evaluated and a member of our team will… Read More
City A.M. | UK Acquisition Deals Fall to Pandemic Low as Foreign Eyes Turn Away from London
Originally posted by City A.M. on June 4, 2024. UK M&A fell to its lowest in March since 2020, with foreign firms’ purchases of British businesses nearly halving over Q2.… Read More
