M&A Market Update

Resilience During Market (and social) Uncertainty

While much of the market pulled back as economic uncertainty prevailed, Periculum has remained committed to our role of providing direction and guidance regardless of market conditions. We have been steadfast throughout 2020, continuing to work diligently with both current clients and potential prospects on key strategic decisions. Our persistence has driven strong results for our clients over the last nine months.

Is overall deal volume down year-over-year? Absolutely. In spite of this, we continue to see significant interest and premium valuations for well-performing businesses across a variety of industries. The lack of quality deals, coupled with the enormous amount of dry powder sitting on the sidelines, creates favorable sell-side dynamics for businesses that have proven to be resilient through the pandemic. For businesses that have been adversely affected by COVID-19 and may be forced to sell due to lender risk appetite, there are unique transaction structures ranging from earn-outs to seller notes that can successfully bridge any potential valuation gaps between sellers and buyers.

As the US election looms, business owners increasingly need to consider the impact of potential tax changes on their net proceeds. If there is a change of administration, we believe most tax changes will likely take effect in 2022, making 2021 a critical transaction year. Periculum remains engaged and active, having closed three sell-side transactions in the last sixty days. Please contact us if you would like to learn more about our process and how we have found success for our clients during this challenging time.

About Periculum Capital
Periculum is a leading investment banking firm serving the corporate finance needs of emerging growth and middle market companies. Periculum is committed to achieving superior outcomes for its clients by delivering customized investment banking services that maximize value while still meeting clients’ individual goals and objectives. The firm’s primary services include mergers and acquisitions, capital markets and restructuring advisory, and specialized merchant banking services. www.periculumcapital.com

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Tel 317.636.1800 | Fax 317.636.1801

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