Middle market business fundamentals remain strong, although some companies are starting to show caution. Revenue growth and hiring have been robust, although companies continue to face challenges in finding skilled workers. There remains a strong appetite for quality deals as valuations have declined slightly. Private equity firms still have about $1 trillion of “dry powder” and appear impatient to put some of that to work. M&A volume moderated slightly in the second half of 2022 and appears unlikely to duplicate 2021’s record pace, but is on track for another strong year.
E-commerce Expected to See M&A Growth in Tough Times 
Online sales will continue to grow globally in the long-term, which will drive M&A activity, the investment banking firm of Harris Williams says. Despite the murky forecast for consumer spending amid recessionary fears, many high-quality e-commerce and direct-to-consumer (DTC) businesses that have kept scaling post …
If you’re thinking of selling your e-commerce business, you will most likely encounter a term you may have never heard of before but that will be very important in arriving at the highest value for your firm: Add-backs.
If you’re an automotive aftermarket retailer and you’re not selling online, you run the risk of being left behind. If you are already selling online, great—but you may need to up your game if you hope to stay competitive going forward. Indeed, having a holistic sales approach—physical stores and e-commerce—may be the best way to compete in this rapidly changing and growing business. M&A may be the quickest way to get there.
It’s understandable that most if not all companies were not prepared for the Covid pandemic and resulting economic shutdown—after all, such an event had never happened before. But there’s no excuse for not being prepared for the next debacle—even if it never occurs.