Cascade Partner’s M&A Q3 2023 Update provides an overview of the latest market trends, select sectors and the general state of middle market M&A activity.
Key Market Findings:
- Consumer spending growth is exceeding income growth as high inflation continues to shrink the power U.S. paychecks. Currently, consumer spending is averaging 85% of income.
- Corporate profits have plateaued, and business investment continues to decline.
- 80% of corporate CEOs anticipate a brief and shallow U.S. recession with limited global spillover, down from a high in Q2 2023 of 87%.
- Annualized deal volume is down over 40%.
- With market uncertainties, private equity has been reluctant to sell their companies. This continues to build fund dynamics with signature deployments and fewer exits.