Heading into 2022, we were focused on the boom in growth and activity creating a long-lasting supercycle thanks to five key factors aligning— stability, availability of capital, investor and buyer willingness to accept risk, technology transition and innovation, and low interest rates. What happened to that supercycle in the first
half of 2022?
In our Summer Newsletter, we explore key factors fueling the current market dynamics and share four possible outcomes for the second half of the year. We also take a closer look at how the downturn is impacting Cascadia’s clients, with perspectives provided from our industry bankers.
We expect rising interest rates will push the U.S. economy into a recession, leading to a healthy tightening of the market.
Deal activity is still robust, but buyer and investor scrutiny has intensified while astronomic prices have muted.
PE buyers are more likely to close than strategic buyers given the volatility of public markets.
Business owners contemplating selling need to go to market in the next quarter or run the risk of owning their business for another three-to-five years.
Our Cascadia team is committed to helping entrepreneur- and family-owned businesses, investors and advisors navigate these choppy waters and make the best decisions to create value. We continue to be optimistic about the prospects for quality companies and look forward to sharing another update with you this fall.
Visit our team’s bios for individual phone and email contact information, or dial (206) 436-2500 for a team directory.
You can also stay up to date with Cascadia Capital’s latest insights by following us on LinkedIn.