The Lower Middle Market

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A smoking hot PE market and this week's LMM activity

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A smoking hot PE market and this week's LMM activity

Week of July 26th LMM Highlights

Daniel McKeon
Jul 30, 2021
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A smoking hot PE market and this week's LMM activity

thelowermiddlemarket.privsource.com

Happy Friday everyone! EY recently released its 2Q 2021 PE Pulse Report and the numbers are staggering.

  • The first half of 2021 saw the most active six-month period on record for private equity

  • More than $580b in deals were announced in the first half, while 2021 is on track to be the first trillion-dollar deployment year

  • Megadeals have returned driving PE acquisition values in comparison to 1H 2020

  • PE buyside and sellside deals account for 29% of total M&A activity - a new all time high

There’s no surprise that M&A activity in the Outsourced Business Services (OBS) sector had a remarkable quarter, as a rising tide lifts all boats. Corporate Advisory Solutions, which focuses on tech-enabled, OBS businesses recently released a 2Q market insights reports and the results are quite impressive.

  • ARM sector players have endured interesting shifts in the political and technological landscape and have proven to be resilient and innovative despite headwinds induced by lawmakers. CAS predicts that the industry would further consolidate in the second half of 2021.

  • In Q2 2021, the CRM sector experienced a surge in M&A activity in both deal value and volume. CAS sees exciting trends in technological transformation and expansion of CRM into the emerging cannabis industry.

  • CAS witnesses the RCM sector undergo extensive technology enablement to resist pressing margins, improve staff education and adapt to patients’ everchanging preferences.

  • While FinTech experiences revolutionary shifts with the decentralization of finance, the Debt Settlement sector proves its resilience against the downward pressure from lawmakers and regulators who threaten to suppress its growth.

Private equity markets are clearly on fire and show no signs of slowing down. Let’s move to this week’s lower middle market activity.

This Week’s LMM Activity

Cloud Equity Group acquires cloud and VPS provider, Digital-VM

Datasite announces acquisition of Firmex

MPE Partners invests in Waterfront Brands, a manufacturer of premium lifts, docks, and related accessories

Iron Skillet Partners acquires six car wash locations from Carmel Car Wash

Pritzker Private Capital-backed ProAmpac acquires recycled paper products co., APC Paper Group

Great Hill Partners invests in Labor First - a group retiree Medicare benefit manager that serves labor unions, public sector entities, and private corporations

Dubin Clark invests in Evergreen Lawn & Pest Control

Fundraising

Hughes & Company announces the closing of its first fund at $116M to invest in LMM healthcare software and technology enabled services companies

Other Stuff

Enduring Ventures bought UpCounsel in 2020, turned it around, and is now raising via a crowdfund

Top Tweet:

Twitter avatar for @Dan_Tamkin
Dan Tamkin @Dan_Tamkin
The independent sponsor needs more equity capital options. There are a billion mezz options out there but like three equity funds that like indie sponsors. Who is starting the next Ocean Avenue Capital?
11:17 PM ∙ Jul 28, 2021
245Likes11Retweets

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