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PE Deal Activity By Quarter

Business Sales M&A activity

A slight uptick in Q2, however much can be said that the bulk of M&A Activity probably happened in the end of 2022

PE managers have had to adjust to make deals happen and keep the leveraged buyout (LBO) machine functioning. Deals have gotten smaller, making them more digestible and easier to finance. Many are add-ons, which can deliver incremental revenue and EBITDA growth to cover the escalation in interest costs. They are also easier to borrow against. The leveraged loan market is still open for M&A financing by sponsor backed companies. Another source of credit for add-ons is the emerging net asset value (NAV) lending market, which is estimated to have grown by 50% in 2022.4
4: “Why 2022 Was Another Record-Breaking Year for NAV Finance,” 17 Capital, Robert de Corainville and Greg Hardiman, March 22, 2023.

US PE Breakdown