Middle Market M&A Update: Q4 2022

The U.S. marketplace has not observed the impacts of elevated inflation in over a decade, as the Great Recession of 2008 marks the last time the consumer price index was recorded as exceeding 5%¹. Further, as it relates to businesses in particular, recent CPI observations suggest that inflation is not only greater than in 2008 but has also permeated more production inputs with a greater impact than at the time of the Great Recession.

With this history in mind, and with the possibility that the recent trends may persist in the near-term, our update this quarter explores two key topics where M&A and inflation intersect: (1) How can M&A be a method to combat the pressures of inflation? (2) How should buy-side M&A diligence adapt to uncover risks that may be otherwise disguised by the impacts of inflation?

FULL REPORT

^{1 U.S. Bureau of Labor Statistics}