PE deal-making in the B2B industry was at some of its lowest levels in the last three years early in 2013, but improved through Q3 and Q4. Still, investors were unable to overcome the early start, as deal flow and capital invested fell by 17% and 11%, respectively, during the year. The rampant activity at the end of 2012 had ripple effects throughout 2013, as industry professionals spent much of the year drumming up new business. “Pipelines from a deal flow perspective seem to be strong, and the key indicators I’ve seen with the investment banks in the middle market feel like 2014 is going to be a strong year,” said Benjamin Redman, director of transaction advisory services at McGladrey.
On the B2C side, deal-making followed a similar path as the broader PE market in 2013, declining 14% from 2012 to 2013. But capital invested actually increased to its highest point since 2008, with more than $20 billion invested each quarter.
More insight and in-depth information on PE investing in the B2B and B2C industries in 2013 can be found in the Private Equity Deal Flow Profiles published by McGladrey. Powered by PitchBook, the reports include current industry trends, deal activity and exit activity, as well as insight from McGladrey professionals.
To learn more or download the reports, click here.