Skyline Advisors
  • Services
  • Team
  • Transactions
  • Industries
  • Reports
  • News
    • Capital Markets
    • Firm News
    • Resources
  • Contact
    • Newsletter

Partners for Strategic Transactions

First Quarter 2022 Financing Update

5/23/2022

 
Download Our First Quarter 2022 Financing Update Here

Q1 capital market activity declined from the record-breaking levels of 2021 but was still historically high. In fact, PitchBook estimates that the first quarter may set a record in venture capital deal volume when factoring in deals that have not yet been reported.

Growth equity investments were strong, early-stage investments generally had a dip, and IPO markets decreased more significantly.

It has been well-known for a while that inflation was like to become a concern after the significant stimulus injected into the markets. However, the exacerbation of price increases by a variety of factors, including the Russia-Ukraine crisis, contributed to the potential market slowdown and volatility.
It should be emphasized that investors are still flush with cash. Even if the final figures for Q1 do not exceed 2021 levels, the quarter’s deal volume was higher than the individual quarters of 2020 and prior years.

With the Federal Reserve on track to raise its key interest rate a further six times in 2022, we will closely monitor how borrowing costs impact financing activity – particularly valuations. We also anticipate that we may see a shifting of investment activity between sectors as some become more out-of-favor while others become increasingly attractive.

As always, contact us if you would like to receive information about activity in your specific industry or geography, or if you would like to discuss options for your business.

First Quarter 2022 Mergers & Acquisition Update

5/23/2022

 
Download our First Quarter 2022 Mergers & Acquisition Update

M&A activity slowed in the first quarter, while valuations fell sharply.

The volume decrease was generally expected as the buyers and investors we spoke with in Q4 generally indicated that they were in a full court press to close deals by year-end and weren’t building as much of a pipeline for Q1. However, for large deals, it may have also been exacerbated by Russia’s invasion of Ukraine and inflation concerns.

The ongoing crisis has pushed commodity prices considerably higher. For example, wheat rose as much as 50%. The Federal Reserve is expected to make an additional six interest rate hikes after its first in March, which is expected to further slow investment.

Nonetheless, from a historical perspective, first quarter activity was still relatively strong. More than 4,700 companies exchanged hands with a total value of more than $600 billion. And we’d be remiss if we didn’t note that investors are still flush with cash.

Valuation levels overall fell sharply during Q1. While we anticipated a decline from historical highs, it was much sharper than expected. We anticipate that both deal volume and valuations may bounce back a bit in Q2 as buyers and investors have been replenishing their deal pipelines after the year-end rush.

We have weathered a few highly uncertain years now, with new challenges arising at the start of 2022. While current trends are slightly concerning for overall M&A opportunities, we continue to believe there is significant demand for strong companies with favorable growth prospects.

As always, contact us if you would like to receive information about activity in your specific industry or geography, or if you would like to discuss options for your business.

    Archives

    May 2022
    January 2022
    November 2021
    August 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    December 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017

    Categories

    All
    Auto Sales
    Bankruptcies
    Capital Markets
    Confidence
    Corporate Profits
    Debt
    Economy
    GDP
    Holiday
    Housing
    Industrial Production
    Inflation
    Initial Public Offerings
    Interest Rates
    Inventories
    Jobs
    Manufacturing
    Mergers And Acquisitions
    Middle Market
    Prices
    Private Equity
    Productivity
    Retail Spending
    Rural Economy
    Small Business
    Stock Market
    Taxes
    Trade
    Venture Capital
    Wages

    RSS Feed

Picture
​Skyline Advisors is a division of Ideation Ventures, Inc. Services involving securities are offered through M&A Securities Group, Inc.4151 N Mulberry Drive Suite 252, Kansas City, MO, 64116  (“MAS") . Services involving real estate brokerage are offered through Berkshire Hathaway HomeServices Ambassador Real Estate ("BHHS"). Skyline, MAS, and BHHS are separate entities. 
​

COPYRIGHT 2020. ALL RIGHTS RESERVED.
Virtual Data Room
Company   Services   Team   Transactions   Industries   Reports   News
Photo used under Creative Commons from inkknife_2000 (8.5 million views +)
  • Services
  • Team
  • Transactions
  • Industries
  • Reports
  • News
    • Capital Markets
    • Firm News
    • Resources
  • Contact
    • Newsletter