State of the Market – Have we taken a turn into Seller Street?
At DWDG we work with a range of businesses that want to get on and grow and build value.
Thought we might share how things look at the moment through the DWDG lens and would be interested to hear back from others on their views.
What we are seeing at the moment is:
Strong demand for good businesses. The covid situation has had quite a dramatic effect on highlighting business resilience and the strong seem to have got stronger. Unfortunately, the cracks have widened in businesses that were already exposed to some extent.
Plentiful interest from Investors. Low interest rates are certainly having an impact on investor appetite. A ready supply of ‘cheap money’ coupled with the reduction of viable alternatives for investment is leading to an acceleration of interest.
‘Highish Multiples’. Overall, we see these heading north and from what we read that is a trend that is common across the board. As ever certain sectors dominate and as we have a specialism in business services, we certainly see this in our areas of deep domain expertise.
Relatively High Execution levels. There seems to be a lot happening at the moment and a real appetite to get deals done at pace (could be driven by the emerging opportunity to get a summer holiday in this year of course 🙂 but we doubt it in reality)
All of the above leads us to conclude that we have just about taken the corner into Seller Street.
What do you think?