Easy A’s, Killer B’s and Tricky Seas

March 11, 2019

GF Data’s recently released year-end report (Easy A’s and Killer B’s) theorized that a value environment remaining steady at unprecedentedly high levels is actually more complex than the surface suggests – that there are competing cross-currents beneath the unchanging water line. We thought it would be interesting to see how this theory holds up.

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Easy A’s and Killer B’s

February 20, 2019

Headlined by a near-record valuation mark of 7.8x Trailing Twelve Months (TTM) Adjusted EBITDA, completed deal activity in the fourth quarter of 2018 showed that there is plenty of “oomph” remaining in this extended seller’s market, according to GF Data’s just-released February report.

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Go Froth and Prosper?

Nov 20, 2018

Middle market deal valuations continued to show signs of plateauing in the third quarter of 2018, according to GF Data’s just-released November report.

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Honey, We Shrunk the Volume

August 21, 2018

Valuations and debt levels remained aloft in the second quarter of 2018, according to GF Data’s just-released August report. At the same time, the data tracking firm saw a drop in completed deal volume that defies the general sense of an enduring red-hot market.

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Indemnification Caps Fall

March 22, 2018

Indemnification caps on private equity sponsored transactions valued from $10 million to $250 million fell from 15.9% to 12.1% according to the GF Data(R) Spring 2018 Key Deal Terms Report.

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High prices force private equity firms to retool strategies

February 20, 2018

The middle-market model has fallen victim to its own success in some ways over the last few years. As investing in small, growing companies has proven lucrative, more and more players have entered the fray. These days, mid-market private equity firms face competition from bulge bracket PE firms heading downstream, large corporations looking to accelerate growth, fundless sponsors doing one-off deals and family wealth offices bypassing PE firms to invest directly. Fundraising has been robust, which means there’s a lot of money chasing the best deals. That, in turn, has driven up prices. To prevail, many PE firms are re-calibrating their approaches, often by lowering expectations for returns, lengthening hold times and accelerating the closing process.

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Multiple Reasons Valuations Seem High

December 19, 2017

There’s no question that deal valuations are at a post-recession peak, yet many middle-market deal-makers suspect prices are even higher than the data suggest, in large part because of the characteristics of the businesses they’re buying, such as size and industry niche.

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