Middle Market Weekly Outlook

Investors are searching for any way to mitigate frothy valuations — and add-ons are one popular solution. The Wall Street Journal reports that “private equity-backed add-on deals hit a record $310 billion so far this year.”

In other news, the Treasury Department released new regulations to deter companies from considering corporate inversions. There may be immediate consequences for big M&A deals.

Insights

• New House speaker Ryan threatens government shutdown
• Investors are showing more reluctance in the face of volatile markets
• Why are co-investments so popular in PE?
• Add-ons can help mitigate sky-high valuations
• Today’s richest family offices
• Forecast for consumer goods M&A growth is meager
• New rules make corporate inversions more difficult
• Oil companies are going bankrupt

Transactions

• TSG Consumer Partners and Lizanne Falsetto sell ThinkThin to Glanbia
• Audax closes 5th fund, following 500th deal
• Shore Capital Partners recaps Specialdocs Consultants
• Rift Valley Equity acquires Arlington Machine and Tool Co.
• Satori Capital invests in Suntree
• Mister Car Wash buys Auto Spa Express
• Agent Ace and Fypio merge to form OpenHouse

This Week in History… President Kennedy is assassinated, and widespread shock ensues. Wall Street shut down the NYSE after Standard & Poor’s 500 dropped 2.8%, but the downfall was short lived, and the markets quickly recovered.