Business
DealCloud Dealmaker Pulse Survey uncovers recession-driven opportunities for dealmakers amid market uncertainty
59% believe valuations in the coming 6 months will be lower than current levels61% are concerned about overlooked or increased risk as a pricing obstacleYet
About this update from Intapp, Inc.
[{"type":"text","content":"59% believe valuations in the coming 6 months will be lower than current levels61% are concerned about overlooked or increased risk as a pricing obstacleYet 73% anticipate the same or higher volume of deal closings PALO ALTO, Calif., Nov. 16, 2022 (GLOBE NEWSWIRE) -- Intapp (NASDAQ: INTA), a leading provider of cloud-based software for the global professional and financial services industry, today released the Autumn 2022 DealCloud Dealmaker Pulse Survey report. This biannual survey explores trends, challenges, and expectations among private equity professionals regarding deal activity, pricing, and fundraising. The autumn survey finds that 66% of dealmakers say recession-driven opportunities will change their investment strategies in the coming 6 months. “Amid market dislocation, it’s important to remember that private equity has historically outperformed after recessionary periods,” said Ben Harrison, President of Financial Services at Intapp. “The current market volatility, denominator effect, and overallocation to private equity relative to other asset classes could reduce the industry’s dry powder. Still, many dealmakers are ready to go on offense to acquire high-quality companies at deeper discounts, positioning them well for recovery.” The pulse Despite this economic environment, as well as increased due diligence stalling deals (up from 7% in spring to 14%), most dealmakers (89%) successfully closed deals and 73% expect to close the same or higher volume of deals than they have in the previous 6 months. Though competition for these deals shows increasing signs of plateauing, 80% believe competition for assets will remain at the same level or increase.More than half (59%) of dealmakers said pricing/valuation fluctuations represented their biggest challenge in the last 6 months. The same percent expect valuations to drop in the coming months, and 61% (up from 52%) are concerned that overlooked or increased risk will be a pricing obstacle.During the coming 6 months, 44% of dealmakers project that their primary focus will be acquiring new companies (down from 58% from the spring survey). Another 15% of dealmakers say that add-on acquisition activity will be a primary focus, while 20% of respondents will focus on improving portfolio company operations and margins — up from 12%. Among portfolio concerns, more than half (53%) o...