Avallon in Puls Biznesu
The editor of Puls Biznesu, Marcel Zatoński, has analyzed the situation on the market of mergers and acquisitions and observes that the last 12 months have been very busy in this field. Experts who are being cited in this article predict that succession transactions may potentially experience another booming season in the coming months. The fact that there are a lot of companies in the portfolios of private equity funds for which the investment horizon is coming to an end will also foster and contribute to the increase in the number of transactions.
Tomasz Stamirowski, managing partner at Avallon MBO, was also asked to comment on the situation:
- Transactional activity will be correlated mainly with the supply of projects and the question of divergence of sellers and buyers in relation to the valuation. The market will most likely observe a collision of several trends, influencing both of these issues in different ways. There should be a strong supply of growth projects all the time, especially coming from the beneficiary sectors of the current situation, although we can already see much bigger caution in buyers' approach to valuations. One can expect a large number of consolidation projects carried out by leaders of individual industries. This will be related to the deterioration of the situation and prospects of smaller entities, which often have serious problems with translating cost increases into higher prices - says Tomasz Stamirowski
– In the field of buyouts, the supply of transactions has always decreased with a significantly unstable market. The current operational problems on top of the covid situation are highly absorbing therefore some companies are unable to continue conducting sales processes, or have problems with presenting reliable declarations, which always prolongs negotiations. On the other hand, restructuring projects appear and with them grows a number of entrepreneurs who find themselves tired of running their businesses, of lack of stability, the number of new rules and regulations, and of tax changes – he adds.
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