Shift in quality dampens activity but keeps multiples high
April 04, 2016
We ended 2015 on a down note and continued to experience a rather noticeable decline in PE deal activity as we moved through the first quarter of this year. Intuitively, the initial expectation would be that we'd start to see transaction multiples decline in an unsure market, along with a proliferation of the debt struggles we saw hurt deals in 2H 2015. That didn't occur, and despite the recent risk-averse behavior dealmakers have practiced, the lower supply of companies that did come to market toward the end of 2015 were welcomed by a healthy level of demand.