Even the FTC Can't Keep Up
Week of August 2nd LMM Highlights
The recent theme around this newsletter has been that M&A activity is red hot. Whether it’s advisors needing to turn away clients or multiples reaching nosebleed territory, all signs point to powerful tailwinds in the M&A market. We wrote last week that this year marks the highest year-to-date total in global M&A activity since 1980.
Apparently, even the FTC is having trouble keeping up with the recent tidal wave of mergers. On Tuesday, the FTC said it will not be able to complete all reviews within its standard 30-day window. Unfortunately, companies that expect to move on after a 30 day wait period, may have to wait longer. And what will be the impact on investors? Will extended timelines eat into returns, and will the uncertainty push activity down? It’s hard to say, but one thing is for certain, the market shows no signs of slowing down.
It was a busy week in the lower middle market too. Let’s recap the activity…
This Week’s LMM Activity
Gladstone Investment supports add-on acquisition for portfolio co. Nocturne Villa Rentals
Surge Private Equity announces investment into Dallas-based massage chair and hurricane simulator operator
Blue Sage Capital-backed Cobra Legal Solutions acquires Digital Discovery
Rallyday Partners platform, Power Technologies, acquires Anywhere Cart, a provider of charging carts, cabinets and accessories to the education, industrial, and healthcare industries
Main Street Capital announced new investment into Orttech, a value-added distributor of products for mission-critical industries
Caitec, a portfolio company of Fairchild Capital Partners, acquires KitNipBox cat subscription service
Riata Capital Group sells platform WSS to Foot Locker
Gen Cap America sells L.W. Allen to Audax Group
MPE Partners and Plastic Components announce the acquisition of Sports Molding
NewSpring raises $364m in its fourth mezzanine fund
Here’s an interview with search fund veteran Andrei Papayanopulos of Arpa Capital. Andrei became Chicago Booth’s first “round trip” for an international searcher with his acquisition and later exit of Mexican insurance brokerage Sekura.
Speaking of search funds, meet Dekos Capital, Dallas’ newest search fund
An inside look into billionaire Michael Dell’s deal of the century
12x is the new 6x!:
We enjoyed this podcast with Mitchel Baldridge and his deal breakdown from a tax and financial planning perspective:
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