Randi Mason Discusses M&A Rebound in the Lower Middle-Market with Mergers & Acquisitions

Partner Randi Mason, co-chair of Morrison Cohen’s Corporate Practice, was quoted in a Mergers & Acquisitions article entitled “LMM Eyes Deal Rebound as M&A Pressure Builds.” The article discussed how the lower middle-market is primed to lead the next wave of M&A activity as private equity firms face mounting pressure to deploy a record $2 trillion in dry powder.

The article highlighted several factors that could lead to a rise in deal activity later this year. Liquidity remains strong across equity and debt markets, driven in part by aging baby boomer business owners facing life-cycle events like retirement and estate planning, as well as a backlog of private equity portfolio companies under pressure from limited partners seeking returns. Buyers are increasingly targeting agile, tech-enabled, domestic-facing businesses in the lower middle-market, where valuations remain attractive and regulatory exposure is limited.

In addition, global trade tensions have eased, and the abundance of private credit is setting the stage for more transactions through 2025. Lower middle-market companies with minimal reliance on foreign supply chains, particularly in tech-enabled services, business services and healthcare, are emerging as top targets.

There is growing optimism that the M&A market is on the cusp of a rebound and that dealmakers are ready to act. “Honestly, people just can’t wait any longer,” said Randi. “Essentially, people need to move on with their lives and they’ve decided it no longer makes sense to time the market or wait for ideal conditions.”

Read the full article here.