The middle market continues to be ripe for deal activity as U.S. corporations and private equity firms look down market to deploy capital. Still, with multiples also at highs and threats of a trade war and a potential economic slowdown, how are dealmakers navigating the current market?
A stream of healthcare, technology, financial services and manufacturing transactions in the middle market have fueled private equity dealmakers. At the same time, dealmakers in the middle market are also expanding their reach to new geographies and nascent industries. With mounds of cash still in their coffers, rapid capital deployment remains imperative as quality and affordable targets become increasingly difficult to source.
Join senior corporate executives, influential dealmakers and investors for a day of networking and discussion about the outlook for transactions in the middle market.
Saema Somalya is Senior Vice President, Deputy General Counsel at Fifth Third Bancorp.
It goes without saying that the Covid-19 pandemic has had its effect on all aspects of the financial markets. As the world, and the markets, get back to normal, how can corporations position themselves to get back into the dealmaking game? Sectors including software as a service, healthcare IT, logistics and business services remain some of the ripest areas for private capital investment, but will that continue? How are investors navigating the current market? And how are businesses dealing with the disruption caused by Covid-19?
Panelist: Meredith Bjorck, Executive Vice President, Chief Legal Officer & Corporate Secretary, HMS Holdings Corp.
Panelist: David DeSantis, Senior Managing Director, Portfolio Manager, Head of U.S. Private Debt, CVC Credit Partners
Typically, dealmakers view add-on or bolt-on deals in two categories: same products, new markets or new products, same markets. Each style of dealmaking carries its own challenges. Expanding into new geographies through deals poses regulatory, cultural and financial roadblocks. At the same time, adding new products also poses its own challenges in sales integration, systems and staffing. What challenges are posed in due diligence in cementing an innovative deal and how do dealmakers maneuver through those issues?
Panelist: Dawud J. Crooms, Senior Counsel, 7-Eleven, Inc.
Panelist: Tom Harris, Partner, Chair, Mergers and Acquisitions Practice Group, Haynes and Boone
Panelist: Tiffany Kosch, Managing Director, CenterGate Capital
As companies recover and rebound from Covid-19, how do dealmakers manage the process of identifying noncore assets and bringing them to market? What roadblocks are faced in the process of acquiring such assets, and what challenges face corporates looking to sell? How are corporations looking at noncore assets as capital becomes tougher to come by? On the other side of the table, what opportunities do divestitures give private equity firms and other bidders?
Panelist: Ross Gatlin, CEO and Managing Partner, Prophet Equity
With worldwide travel and connectivity disrupted by the coronavirus, how has the market changed for cross-border deals? How are multinational companies looking at aspirations in foreign markets and growth plans abroad? Has the art of cross-border dals changed following Covid-19? How are PE firms, which still have record amounts of dry powder, finding deals in new markets, and how are they navigating these processes in a new world?
Eco-friendly, socially conscious and pro-governance investments have been hailed recently with a surge in focus on ESG initiatives. But sustainability and profitability don’t always go hand in hand. How can dealmakers balance sustainable investments with profits and long-term growth? How do companies plan for future growth but also stay prepared for shorter-term issues? What are the biggest challenges facing companies making a pivot to more sustainable practices, be it in manufacturing, operations or dealmaking?
Panelist: Eric Berlin, M&A Operations, Platinum Equity LLC
Panelist: Matthew Vaughn, Senior Vice President and General Counsel, Par Pacific Holdings, Inc.
Celebrating the leaders of The Deal Economy: The Deal will recognize the leading lawyers, bankers, investors and advisers in middle-market transactions at Bryant Park Grill. Join us as we celebrate the people and firms who are setting the trends.
The Corporate Governance Conference explores the evolving relationship between companies, activists, institutional investors and shareholders and what’s really going on in the boardroom while managing companies to maximize shareholder value.