DJ Palmer offers his perspective on second quarter market conditions and deal flow.
April 1, 2021—The Firmex Deal Flow Bulletin gives readers a glimpse of what advisors anticipate for their deal volumes, what they expect to see from active sellers, and the key challenges they face for completing deals. Highlights include:
- Tracking new Q1 data room activity, Firmex forecasts a 5% increase in deal announcements over the next 90 days compared to the previous quarter.
- Most M&A advisors (44%) hold a positive view of the M&A market, with 16% even stating that they feel very positive. 29% feel neither positive nor negative, while 11% hold a negative view of the M&A market.
- 48% of M&A advisors think that the pandemic’s impact has been negative, while 35% stated that the impact was neutral.
- 68% of M&A advisors anticipate an increase in deal volume, while 28% expect no change.
- 71% of M&A advisors are expecting to see an increase in the number of active sellers on the market, with only 7% expecting a decrease.
- Buyer and seller valuation expectations remain as the primary challenge (49%) for M&A advisors, with the inability to meet face-to-face (22%) identified as the second-most challenging obstacle to completing deals.
Firmex reached out to Ascend’s DJ Palmer to provide his thoughts as we head into the second quarter. Click here to read the full bulletin.