Minnesota merger-and-acquisition activity rebounded in a big way in 2021
Mergers and acquisitions involving Minnesota-based companies were white-hot and widespread in 2021.
Deal price and volume reached levels that were among the highest since 2000. And numerous industries got in on the action, according to Business Journal research. […]
“We’re seeing historic levels no matter what ecosystem people are playing in,” said Brian Slipka, CEO of Minneapolis-based Sunbelt Business Advisors, which specializes in transactions under $150 million. “This is historic because you typically don’t have all these forces of change that are driving it. Super simplistic, but you have low interest rates, government subsidies and boomers all transitioning their businesses. It creates record levels. Why did the Timberwolves sell? Because Glen Taylor is getting old.” […]
2022 and Beyond?
Local experts and executives in the M&A world expect the good times to continue for at least the next sixth months, but after that all bets are off.
“We’re expecting it to remain strong,” said Barbara Lano Rummel, an M&A attorney for Minneapolis-based Ballard Spahr. Lano Rummel pointed to black-check companies as entities to watch. “There’s been about 400 [special acquisition purpose companies] that have raised half a trillion dollars in [initial public offerings]. They have to complete an acquisition within 24 months or give the money back [to investors].”
Others are a little more skeptical that hot run will continue much longer.
“A word of caution — this is something that I’m willing to put out there — I think there are headwinds,” Slipka said. “As crazy as it’s been the past year and probably will be for the next six to 12 months, I believe the sugar high of government stimulus, rising interest rates and aging population will cool prices, but not activity. … There’s never been a better time to sell your business, and I think that’s pretty much ending now.”
Blog Adapted from Patrick Rehkamp – Reporter, Minneapolis / St. Paul Business Journal
