Lower Middle Market Confidence

searcher profile

December 20, 2022

by a searcher from Birla Institute of Technology and Science in Kelowna, BC, Canada

Hey peeps,

With the economic slowdown recently, what are the trends in investment in the lower middle market?

Do investors still see potential and growth in the market?

Feel free to share any related experience...

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commentor profile
Reply by a searcher
from University of Virginia in Norfolk, VA, USA
With inflation and rising interest rates, you'll likely encounter more companies that are operating on narrowing margins or nearing financial distress. Also, small PE shops are pushing ever deeper into the lower middle market, so there is more competition for good deals (and they often have earlier access to the good ones given their existing deal flow channels).

If you find a good deal, that's great. Be prepared for tougher competition and consider how you'll differentiate yourself in the eyes of the seller.
commentor profile
Reply by a searcher
from University of California, Santa Barbara in Los Angeles, CA, USA
Stop worrying about what you cannot control. If you have a good deal, it will get funded. If you have a crap deal, it won't. Put your effort into finding a good deal. This advice is for everyone who keeps posting about this, not just you.
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