WINTER IS COMING - HOW ARE SEARCHERS PREPARING FOR THE RECESSION?

It's coming. Most of the world is in recession (Asia, middle-east, Mexico, Europe) and now the global industrial economy is in recession, including US and Canada. Trillion dollar Trump deficits and consumer spending are the two remaining bright spots.

M&A values have started to decline. While the headline multiple might be holding, ebitda is being more heavily scrutinized with less add-backs and allowed recasting.

Are searchers feeling pressure from funders? Are funders getting timid as the economy cools?
Are searchers desperate to get a deal done before the recession - and be guaranteed a regrettable price paid?
Are there searchers who can 'hibernate' and become a more aggressive buyer in[redacted]months?
Do many searchers have the wrong investment partners for the next cycle?
I know there are few data points but what happened to searchers and search funds in[redacted]?

Forgive the angst this may cause amongst many of you.

Jeff



share: