Business
Despite heightened risk and valuation challenges, Spring 2022 DealCloud Dealmaker Pulse Survey finds dealmakers remain optimistic
Almost half (45%) foresee an impact due to rising geopolitical, economic, and inflationary risks.Many (66%) found increased pricing/valuations in their target
About this update from Intapp, Inc.
[{"type":"text","content":"Almost half (45%) foresee an impact due to rising geopolitical, economic, and inflationary risks.Many (66%) found increased pricing/valuations in their target sector to be the biggest challenge to closing deals in the previous six months.Almost all private equity firms (94%) have closed deals in the previous six months, up from 89% in autumn 2022.Most (80%) anticipate the same or higher volume of new deal closings during the coming six months. PALO ALTO, Calif., June 13, 2022 (GLOBE NEWSWIRE) -- Intapp (NASDAQ: INTA), a leading provider of cloud-based software for the global professional and financial services industry, today released the Spring 2022 DealCloud Dealmaker Pulse Survey report. Intapp surveyed private equity professionals about recent deal activity and fundraising as well as trends, factors, and challenges that concern them in the months ahead. The survey showed record-breaking activity in the past six months not only in the number of deals, but also in competition, pricing for deals, and fundraising. “With more risk, competition, and uncertainty today, you need to either cover the market more broadly across your network, or more deeply with sector expertise and management insight,” said Ben Harrison, President of Financial Services at Intapp. “Right now, it’s about minimizing risks and maximizing relationships.” Key takeawaysPast positive economic trends, coupled with robust capital inflows and optimism for deal activity, fueled a market rally. However, private equity professionals view heightened competition, geopolitical, socioeconomic, inflation-related, and talent risks as significant challenges. Key findings include: Increased confidence in market opportunities: More than half (52%) of survey respondents indicated that they’ll be raising their largest fund to date, while only 1% indicated that the next fund will be smaller than anticipated. Generally, investor expectations of private equity returns have not changed, as 80% anticipate the same or higher volume of new deal closings during the coming six months, with 44% planning more deal closings Primary deal focus: Over the next six months, most firms (69%) expect to focus on acquiring new companies or rolling up/bolting on to existing portfolio companies. Just 12% expect their primary focus to be working with existing portfolio companies on operations.Primary...