Navigating Challenges in Today’s Market: Insights from Louis Plung & Co. Partner Tony Montanaro

In a challenging market environment with increased interest rates and inflation, buyers and sellers are facing new obstacles in completing deals. Louis Plung & Co. Partner Tony Montanaro sheds light on the current conditions and how they are impacting the middle-market.

Despite a slow year for deal making on a macro level, Montanaro notes that deals are still happening in the middle-market. However, buyers are pushing for lower valuations due to the higher risk associated with leveraged deals in a high-interest rate environment. Lending has also tightened, leading buyers to be more selective in their investments.

To get a deal done, Montanaro emphasizes the need for extensive due diligence. Buyers are scrutinizing supply chain disruptions, inflation-related price increases, and historical growth rates to assess a company’s future profitability. With economic uncertainty looming, determining a company’s ability to maintain profitability in the future is a challenging task.

Montanaro discusses these market conditions and their impact on buyers and sellers in today’s market on the Smart Business Dealmakers Podcast. As businesses navigate through these challenges, it is crucial for both buyers and sellers to adapt to the changing market dynamics to ensure successful deal outcomes.