Leigh Golombick’s Post

💡 Forget the mega-deals, the smart players are now eyeing mid-market companies. The shift isn't random — it’s strategic. 📌 𝗟𝗕𝗢 𝗠𝗼𝗱𝗲𝗹 👉 https://shorturl.at/mGbxn 🎯 𝗪𝗵𝘆 𝗠𝗶𝗱-𝗠𝗮𝗿𝗸𝗲𝘁 𝗙𝗼𝗰𝘂𝘀? Mid-market companies are increasingly becoming the sweet spot for private equity. These firms offer growth potential without the baggage of overvalued large-cap businesses. PE firms are betting on the agility and scalability that mid-sized firms can bring to their portfolios. Here’s why private equity is making mid-market moves: 1️⃣ Stronger ROI Opportunities Mid-market companies offer better room for growth compared to saturated large-cap deals. PE firms can drive value creation faster through strategic add-ons and operational efficiencies. 2️⃣ Lower Risk, High Reward These companies often operate in niche sectors, giving PE investors the advantage of lower competition. The ability to acquire businesses at more reasonable multiples makes mid-market investments more attractive — and less volatile. 3️⃣ Greater Control With less bureaucracy and streamlined management, PE firms can exert more control over mid-market companies. This means faster decision-making and the ability to pivot quickly, a luxury you don’t always get with larger enterprises. 🔎 𝗛𝗼𝘄 𝗧𝗼 𝗖𝗮𝗽𝗶𝘁𝗮𝗹𝗶𝘇𝗲 𝗼𝗻 𝗠𝗶𝗱-𝗠𝗮𝗿𝗸𝗲𝘁 𝗗𝗲𝗮𝗹𝘀 Know the Market: Understanding the specific industry drivers in the mid-market is crucial. Growth opportunities exist, but knowing the ecosystem inside-out is key. Optimize Operational Leverage: Mid-market firms are leaner, meaning you can optimize operations more efficiently, improving margins and growth velocity. Be Ready to Pivot: The agility of these companies allows you to capitalize on market shifts more quickly. But flexibility is essential — both in strategy and execution. 🌍 𝗧𝗵𝗲 𝗙𝘂𝘁𝘂𝗿𝗲 𝗢𝗳 𝗣𝗘 𝗶𝗻 𝗠𝗶𝗱-𝗠𝗮𝗿𝗸𝗲𝘁 With the right strategy, mid-market private equity offers immense upside. As large-cap deals become pricier and competition more fierce, expect to see more firms doubling down on these "hidden gems." The real winners will be those who can balance innovation, speed, and execution — positioning themselves at the forefront of this evolving PE trend. Credit: American Investment Council / Pitchbook 📚 𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗙𝗥𝗘𝗘 𝗿𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀 𝗳𝗿𝗼𝗺 𝗼𝘂𝗿 𝗽𝗮𝗿𝘁𝗻𝗲𝗿 Private Equity Bro: 🔗 M&A Advisory Pack: https://shorturl.at/iyvJS 🔗 Transactions Toolkit: https://shorturl.at/qKBB0 🔗 Alternatives' Guides: https://shorturl.at/ZKR6B

M&A activity in Technology Services skyrocketed to $9.2B in Q3 2024—a 4x jump from the same time last year. But here’s the twist: deal volume barely budged. What’s driving this? Companies are placing strategic bets on high-growth, high-valuation areas like digital engineering and data analytics. The latest Zinnov report also reveals other trends reshaping the industry: 1) Smaller Players, Bigger Impact: India’s mid-cap IT firms grew at nearly double the pace of their large-cap counterparts, with average valuations up by 20%. This highlights the increasing value of niche expertise and focused growth strategies. 2) Private Equity in the Driver’s Seat: PE firms are reshaping the industry with targeted investments, emphasizing not just growth but strategic synergies. They’re building ecosystems—such as integrating digital and analytics capabilities—that create immediate value for their portfolios and position them for long-term success. 3) Resilience in Uncertainty: Despite inflation, geopolitical tensions, and fluctuating demand, investor confidence remains steady. Large deals continue to be driven by stabilizing interest rates, strategic realignments, and a growing focus on long-term value creation rather than short-term gains. Having spent much of my career navigating growth in the technology services space, these trends strike a chord. The shift toward specialization and strategic alignment resonates with the way I’ve approached building and running businesses. What I find particularly interesting is the emphasis on agility—whether it’s smaller firms outpacing giants or private equity targeting sharp, strategic acquisitions. Which of these trends surprises or excites you most? Are you seeing these dynamics play out in your world? Let’s connect and discuss. #TechnologyServices #M&A #DigitalInnovation #GrowthStrategies

🔍 Navigating disruption in 2025 2025 is set to be a pivotal year for private equity, with macroeconomic shifts driving both challenges and opportunities. CIL’s Jonathan Whiteman and Axel Leichum predict: ➡️ Increased deal activity as interest rates improve and valuation gaps narrow ➡️ Fierce competition for quality assets, requiring firms to act fast and decisively ➡️ A sharper focus on domestically driven businesses in the US to mitigate global risks ➡️ A critical need for hypothesis-led strategies and innovative value creation approaches Find out why robust planning, sector-specific insights and value creation will define the winners in 2025: https://lnkd.in/eztJ9rs8 #CILInsights #PrivateEquity #MandA

In 2023, private companies navigated a complex landscape, with the incidence of down rounds rising to 20% from 8% in 2022, according to PitchBook. But despite the headwinds, there is reason to be optimistic. The capital-raising environment, marked by higher costs and limited exit options, still offers substantial opportunities. Encouragingly, Federal Reserve rate hikes, which hit a 20-year high of 5.6% in September 2023, have started to stabilize. This shift can pave the way for a more favorable investment climate. So, how can companies ride this wave of cautious optimism? 1.    Showcase your path to profitability - investors want to see the roadmap 2.    Have a robust plan for using new capital - growth trumps liquidity 3.    Keep financing terms crystal clear - complexity is out, simplicity is in 4.    Consider strategic investors - they bring more than just money to the table The message is clear: adapt, innovate, and seize the day. Read more from my EY brilliant colleagues Stephen Lambrix and Mark Schwartz here 👇 https://lnkd.in/eqbi4tiP #PrivateCapital #Growth #Strategy

Morgan Stanley Research predicts a 50% increase in deal volumes compared with 2023, thanks to growing corporate confidence and positive news on the global economy. Our analysts have flagged six areas to watch for M&A in the coming year – including energy, healthcare, and tech. Read the article below to find out where potential opportunities lie.

Are SME IPOs moving toward bubble territory? Recently, there have been rising concerns over too much ‘froth’, price manipulation, and excessive speculation within the SME segment. However, SMEs have exhibited commendable performance in certain metrics. Understanding market bubbles, performance metrics, and comprehensive data associated with the SME segment helps investors and market participants make prudent investment decisions amidst market uncertainties. Our recent blog on the “Existence of a Bubble in the SME Segment” offers a well-balanced view of the complexities involved in SME and provides detailed data-driven insights of a Bubble for comprehensive understanding. To access the full blog, click on the link: https://lnkd.in/d5rm648z #chanakyaopportunitiesfund #smeinvestment #investmentopportunities #sme #smesector #smerisks

Morgan Stanley Research predicts a 50% increase in deal volumes compared with 2023, thanks to growing corporate confidence and positive news on the global economy. Our analysts have flagged six areas to watch for M&A in the coming year – including energy, healthcare, and tech. Read the article below to find out where potential opportunities lie.

Morgan Stanley Research predicts a 50% increase in deal volumes compared with 2023, thanks to growing corporate confidence and positive news on the global economy. Our analysts have flagged six areas to watch for M&A in the coming year – including energy, healthcare, and tech. Read the article below to find out where potential opportunities lie.

Morgan Stanley Research predicts a 50% increase in deal volumes compared with 2023, thanks to growing corporate confidence and positive news on the global economy. Our analysts have flagged six areas to watch for M&A in the coming year – including energy, healthcare, and tech. Read the article below to find out where potential opportunities lie.

This article by PwC on Global M&A Industry Trends in 2024 paints a picture of a market in flux. While the year began with high hopes for an upswing in dealmaking, the reality has been a decline in activity, shrouded in what the author Brian Levy and Suzanne Bartolacci aptly calls a "fog of uncertainty." High interest rates, volatile valuations, and geopolitical tensions have cast a long shadow, causing dealmakers to pause and reassess. However, as the article astutely observes, "the need for M&A activity remains strong." Indeed, the forces of technological disruption and private equity's imperative to exit investments are creating a powerful undercurrent of pent-up demand. The authors predict a rebound in the second half of the year, once some of these uncertainties clear. This resonates deeply with my own observations in the MENA region. We're witnessing a fascinating dynamic – a dance between caution and ambition. The region's economic fundamentals remain strong, fueling a desire for growth and expansion. Yet, the global headwinds have introduced an element of prudence. Dealmakers are scrutinizing valuations with a keener eye, and strategic alignment is paramount. This cautious optimism is mirrored in the trends we're seeing in the MENA investment landscape. While megadeals may be less frequent, there's a growing appetite for strategic acquisitions that enhance capabilities and open new markets. Digital transformation and ESG considerations are no longer buzzwords; they're integral to dealmaking conversations. In this environment, success hinges on agility and foresight. Companies need to be prepared to seize opportunities when they arise, while maintaining a disciplined approach to valuation and due diligence. The ability to navigate the "fog of uncertainty" with a clear strategic vision will be the hallmark of successful dealmakers in the MENA region and beyond. #MA #MENA #Investment #Trends #2024 #Strategy #Uncertainty #Opportunity https://lnkd.in/ddWUcn-J