Mergers and acquisitions deals hit a plateau in the first half of 2024, with 177 sales registered in the first six months of the year, matching the number of deals in the first half of 2023.
There are, of course, many factors at play, but financial experts that Plastics News' Frank Esposito spoke with put the blame on continued higher interest rates and lackluster growth.
"If a buyer's not performing well, they're less apt to be active, and that creates challenges for buyers and sellers," PMCF Managing Director John Hart told Frank. "[Last year] wasn't stellar, and now that's being compounded by interest rates being higher. And it looks like higher rates are here for the foreseeable future."
Demand remains strong for quality companies, but few meet the exact demands of potential buyers who can choose to be picky at this point.
Things could pick up in the second half of the year if interest rates drop, however.
"We expect deal volume to improve," said Matt Miller, managing director with Cascade Partners LLC in Grand Rapids, Mich. "There should be more money available and better conditions for investment. It's not going to be a historic spike, but there will be improvement."