Citizens: M&A activity likely to increase among midmarket companies, private equity firms
M&A ACTIVITY will likely continue to increase throughout 2024, according to a recent survey by Citizens Financial Group Inc. / PBN FILE PHOTO
PROVIDENCE – Expect an increase in mergers and acquisitions among middle market U.S. companies in the upcoming year, Citizens Financial Group Inc. says, as respondents to a recent survey report their highest levels of optimism since 2020. On Thursday, the Providence-based bank holding company released its 2024 M&A Outlook, an annual survey of 400 midmarket and
To Continue Reading This Article
Become a Providence Business News subscriber and get immediate access to all of our premier content and much more.
PROVIDENCE – Expect an increase in mergers and acquisitions among middle market U.S. companies in the upcoming year, Citizens Financial Group Inc. says, as respondents to a recent survey report their highest levels of optimism since 2020.
On Thursday, the Providence-based bank holding company released its 2024 M&A Outlook, an annual survey of 400 midmarket and private equity executives throughout the country.
Of the 277 midmarket leaders surveyed, 46% expect a strong M&A market in 2024, according to Citizens.
Meanwhile, 52% of private equity executives characterize the current M&A market as strong, and 46% expect higher volume deals this year. — up from 38% and 19%, respectively, in last year’s report.
For the second year in a row, the survey found, the potential buyer pool also expanded.
Jason Wallace, head of Citizens M&A Advisory, attributes this upswing to “a sense of normalcy … returning to the M&A environment.
“Companies across sectors are looking at their economic prospects and seeing opportunities,” Wallace said in a statement. “There is still caution, but that positive economic backdrop will continue to bring activity back to the market.”
Fewer companies reported concerns around commodity prices, interest rates and the labor market compared to 2023, the survey notes, and 46% of mid-market companies and 50% of private equity firms expect overall U.S. economic conditions to improve this year. Of companies reporting this optimism, 68% say they’re likely to engage in M&A activity in 2024.
Among other insights, Citizens highlighted, one-quarter of those who plan to shop are on the lookout for AI assets. And in another year-over-year increase, more than half of mid-market and private equity executives expressed said they’re interested in international investment opportunities.
The survey defines midmarket businesses as companies making $50 million to $1 billion in revenue and considers private equity firms with fund sizes below $1.5 billion. Companies participated via web or phone surveys in November and December 2023.
Jacquelyn Voghel is a PBN staff writer. You may reach her at Voghel@PBN.com.
