Business Recovery

BDO predicts rise in M&A activity in coming months

According to the firm’s Private Capital Pulse Survey, 91% of private equity and venture capital fund manager say asset prices will increase in the next 6 months, more than half of whom believe those increases will be 10-25%

BDO has revealed its prediction that there will be a rise in mergers and acquisitions over the next couple of months, as the United States’ vaccine rollout continues.

According to the firm’s Private Capital Pulse Survey, 91% of private equity and venture capital fund managers say asset prices will increase in the next 6 months, more than half of whom believe those increases will be between 10-25%.

Scott Hendon, the national leader of private equity at BDO, said: “The last two quarters have seen a release of 2020’s pent-up deals coming to market.

“Coupled with federal economic stimulus efforts and tax policy changes, as well as the impact the pandemic has had on prompting business owners to consider selling, we will continue to see very healthy activity through the end of the year.”

He added: “Quality deals in attractive industries will continue to garner outsized multiples.”

Kevin Bianchi, BDO’s national leader of venture capital, said: “The global venture capital market has come back in full force as of the close of the first quarter, with strong funding across the VC spectrum, from seed to late stage investments.

“Strong interest in early stage VC investing signals that fund managers are looking to deploy capital in new and emerging companies and technologies to find that next diamond-in-the-rough investment that will carry the entire fund.”

 

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