Strategic buyers were highly acquisitive in the first half of 2023 as industry leaders augmented their internal growth initiatives with inorganic M&A strategies. While dry powder across the global private equity landscape reached nearly $2.5 trillion as of June 2023 (Source: S&P Global) key factors such as higher costs of capital, heightened scrutiny from investment committees, and difficulties securing debt financing shifted the advantage to strategic buyers when bidding in competitive M&A auctions. Across various sectors in the first half of 2023, we witnessed numerous companies pursue strategic acquisitions to bolster their solution offerings and realize attractive cost synergies.In the Professional Audio / Visual space, global distributor Midwich Group continues its international expansion with its acquisition of SF Marketing in June 2023. Originally based in the U.K, this marks Midwich’s ~25th acquisition to-date, securing access to North American distribution networks through SF Marketing’s Canadian headquarters. In the Security space, fire and safety solutions continue to be a red-hot source of M&A activity. Altus Fire & Safety acquired Crime Intervention Alarm (“CIA”) in May 2023. CIA is a leading provider of installation, monitoring, and restoration services for surveillance, access control, and fire systems in the Mid-Atlantic region.
While global M&A volumes remain compressed due to market uncertainty and the heightened costs of capital, investors continue to seek high-quality assets with strong margins and market-disrupting solutions. If you are interested in learning more about what’s happening in consumer electronics, music technology, professional A/V, residential technology, or security technology, or about potential M&A or capital raising options for your business, please do not hesitate to reach out.
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