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.
Potential economic headwinds have slowed large-cap dealmaking while the middle market remains active. Sectors including software as a service (SaaS), healthcare IT, logistics and business services are some of the ripest areas of private capital investment. How are investors navigating the current market? And how are businesses dealing with potential disruption and economic cycles? Are corporations, investors and advisers having success with cross-border deals?
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 corporate dealmakers feel pressure to streamline businesses, divestitures become a normal course of portfolio management. How do dealmakers manage the process of identifying noncore assets and bringing them to market? What roadblocks are often faced in the process and what challenges face corporates looking to sell assets? 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
Whether it’s a few high-profile managing directors with an overflowing Rolodex or sprawling teams of business development folks across the globe, firms are investing big bucks in sourcing deals. In many cases they are looking to avoid costly auctions and sign exclusive, negotiated deals that don’t hit such high multiples as investment bank-led processes. How are PE firms and corporations alike sourcing deals, and what other factors have led to an increased focus on how deals are sourced? What challenges are posed in working through cross-border deals from a regulatory, cultural and fiscal standpoint?
Panelist: Meredith Bjorck, Executive Vice President, Chief Legal Officer & Corporate Secretary, HMS Holdings Corp.
Panelist: Meahgan O’Grady, Vice President, Business Development, KPS Mid-Cap Investments
Panelist: Stephen O’Hara, Vice President, Origination, Riverside Company
In Larry Fink’s most recent letter he outlined how Blackrock would avoid investments in companies that have a high sustainability-related risk, and vote against corporate managers who aren’t making progress on fighting the climate crisis. Stacey Maris will explore how AT&T is thinking about their assets, how they view climate change as a risk factor to their business, and how they engage with other shareholders on ESG issues. In addition, she will discuss interacting with activist investors, and shareholder outreach during an activist campaign.
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? What are the biggest challenges facing companies making a pivot to more sustainable practices, be it in manufacturing, operations or dealmaking?
Panelist: Matthew Vaughn, Senior Vice President and General Counsel, Par Pacific Holdings, Inc.
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The Deal Economy conference attracts senior executives, dealmakers and investors from a variety of sectors. Attendees will walk away with smart strategies, actionable tactics and connections to the people who are shaping the future of dealmaking in the middle market.
Sponsorship: Jenney Smith E: [email protected] P: 212-224-3026
Register/Press: Nicole Harris E: [email protected] P: 212-224-3040
Speakers: Eric Salvarezza E: [email protected] P: 631-664-1311
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