Valuations Continue to Trend Higher in Today’s Booming, Highly Competitive M&A Market

“There’s a lot of confidence in the market for many reasons, including the successful rollout of COVID-19 vaccines in some parts of the world. Meanwhile, well-capitalized corporates, private equity (PE) firms and SPACs are more active than ever. This collective appetite has led to a highly competitive situation with a lot of cash chasing a dearth of deals. While potential headwinds are present, valuations are rising and multiples are up significantly from where they were two years ago.”

Currently, we have an interesting situation where a large amount of cash chases a limited number of deals.

This is impacting the valuations for the target companies.