Rosenfeld Speaks at Mergermarket M&A Forum Chicago 2023

^{Baird's Rosenfeld (far right) joined a panel of M&A experts to discuss the current dynamics in play for dealmakers, as well as the valuation outlook for the next year.}

Viable valuations: Finding the right price point

Robert Rosenfeld, Managing Director in Baird’s Global Consumer Investment Banking team focusing on Household Products and Juvenile & Toy Products, was recently featured on a panel at the 2023 Mergermarket M&A Forum in Chicago, which focused on viable valuations and finding the right price point. The panel covered a number of timely questions facing the markets, including:

• Valuations and expectations – how have they changed over the last 12 months?
• What role are private credit providers playing in filling the financing gap left by regional banks?
• Is there a lack of standardization in valuation methodology?
• How is leverage availability affecting valuations in the large-cap deal space?
• Is the bid–ask spread starting to narrow to the point where transactions will progress?

The Consumer sector is navigating factors that impact valuations, including supply chain challenges, COVID-19 impact, inventory levels, interest rates and consumer spending.

There are characteristics of certain companies that are going to be more appealing than others in this market. The bar for consumer discretionary at the investment committee level for private equity firms is much higher now.

Robert Rosenfeld, Baird

The backlog of deals remains high as parties wait for the right time to enter the market. The panel’s expectation was that the rest of 2023 won’t necessarily see worsening conditions but also may not improve as much as some hope. This will likely keep multiples down for the foreseeable future. The group discussed how increased deal creativity and flexibility between all parties involved will be key as companies find the right time to go to market. There is more certainty now related to interest rates, allowing companies to put money back to work in the right spots. Additionally, the panel felt it is essential that companies need to find the right balance when entering the market for their specific opportunity so it attracts the correct attention.

View the full panel replay

Interested in learning more? Connect with Baird Global Investment Banking.