News Digest:

In spite of sitting pretty with $1.5 trillion in unspent capital, private equity aren’t making headway with deals despite seeking acquisitions aplenty. A published report indicates that most of the deals hit hurdles caused by valuation gaps.

On the other side, companies do not go through with deals, often scrapping them in favor of the spinoff route due to disappointing bids offered by private equity players. In recent weeks, more than $30 billion worth potential deals could not follow through for these reasons.

Takeaway:

Some market analysts noted that instead of spending time on price expectations during deal discussions, potential PE investors instead prefer to work on due diligence matters.Global deal volumes are down 44% this year to $1.1 trillion, according to data compiled by Bloomberg, which also noted that it is taking longer to bring buyers and sellers together with PE firms setting a higher bar to signing off a deal.

End Notes

Source: https://www.bloomberg.com/news/articles/2023-06-12/private-equity-firms-hit-roadblocks-on-30-billion-of-takeovers#xj4y7vzkg