Annual survey by Citizens Financial Group reveals optimism once macro conditions stabilize, but headwinds remain
More than 80% of U.S. middle-market companies and private equity firms agree that company valuations will be stable or higher in 2023 after a year of big price adjustments, according to an annual survey by Citizens Financial Group Inc.
Most middle-market companies among the 400 respondents to the Citizens’ 2023 M&A Outlook expect better conditions in 2023 after macroeconomic uncertainty, inflation and steep losses in equities derailed deals in the past year.“When the macro conditions normalize, we see a pipeline of buyers and sellers eager to return to the market,” said Jason Wallace, head of M&A advisory at Citizens Financial Group CFG , in a prepared statement.
However, headwinds in the middle market remain with about 66% of respondents in the Citizens survey agreeing that inflation is making business more challenging. Nearly half said they’re challenged by rising interest rates. Other concerns include labor market challenges, geopolitical instability and loftier commodity prices.
Respondents said they expect higher valuations across every sector but transportation and logistics, as well as aerospace/defense and business services drew the most bullish valuation views. In January, 2022, 86% of the 400 respondents said they expected company valuations to either increase or remain stable, compared to 87% in January 2021. A year ago, 36% said they expect higher company valuations, down only slightly from 38% in 2021.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Brent will return to over $100 a barrel by the middle of 2023 – Morgan StanleyLooking back, 2022 was an eventful year for the oil market. Martijn Rats, Morgan Stanley's Global Commodity Strategist, discusses some of the key unce
Read more »
Grocery leads new D-FW retail construction, which otherwise is at historic lowsWeitzman’s annual retail update said more projects are in the pipeline for 2023.
Read more »
Your Taurus January 2023 Horoscope Predictions Are HereThree planets end their retrograde this month, Taurus. What will that mean for your career? ♉
Read more »
Bill Belichick Will Return to Patriots for 2023 NFL SeasonBill Belichick made the announcement to reporters that he will be back for his 24th season with the team, but he stressed that his squad needs to improve
Read more »
The Morning After: The best of CES 2023 | EngadgetThe top news stories today: Apple’s long-rumored mixed reality headset could finally debut this spring, Samsung might unveil the Galaxy S23 series on February 1st, The best of CES 2023..
Read more »
Jaguars to host Los Angeles Chargers in wild-card round of playoffs; 2023 opponents revealedThe Jaguars now know both the kickoff time and the opponent for this weekend's NFL playoff opener at TIAA Bank Field.
Read more »