At the end of last year we saw a number of deals slow down after it became apparent that the current administration would not have the votes in 2022 to reverse the 2017 income tax cuts. Not surprisingly, we had a busier first quarter than normal this year as many of those deals resumed and closed. All told, we closed twenty-five deals during the first quarter of 2022, up significantly from the volume we typically experience during the first three months of the year (during 2021 we closed sixteen deals and during 2020 we closed ten). Deal size averaged $25,730,000 during the first quarter of this year, which is right in line with our historical average. Our activity was concentrated in healthcare/dental service organizations, energy and aerospace, which collectively accounted for eighteen of the 25 transactions.

Obviously we are now in a different time with world events and macroeconomic factors changing dramatically during the last several months. How this will impact the M&A market remains to be seen. While cautiously optimistic for another great year for M&A deal volume, choppy waters may lie ahead.

Below are tombstones from some of this quarter’s deals.

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