* GI Manager LP, or GI Partners, reached a deal to acquire Atlas Technical Consultants Inc., an infrastructure and environmental solutions provider, for $1.05 billion in an all-cash transaction that includes outstanding debt. ⮞ That means some utilities looking to fund equity needs, like Black Hills Corp., may seek alternatives to minority stake sales. ⮞ Rising interest rates are making private equity firms more hesitant to pursue deals in the sector, Mizuho noted in a January report. ⮞ As North American electric and multiutility holding companies prepare to report fourth-quarter 2022 earnings, there are signs private equity interest in acquiring utility assets is cooling. Prospects for private equity dealmaking was just one of the topics covered in "How to Navigate 2023’s M&A Headwinds: The Big Picture, Macro to Micro," a recent S&P Global Market Intelligence webinar hosted by the Association for Corporate Growth.ĬHART OF THE WEEK: Private equity backs off utility sector M&A "They're still likely to move forward with some of those exits even if it's not at the max dollars because it's the right thing for them to do strategically," Wolff said. They are more likely to accept a lower valuation if the deal off-loads debt or generates cash that can be reinvested in core strategies, said Scott Wolff, managing director at middle-market private equity firm American Securities LLC. Most buyers will not pay the relatively high 2021 prices for assets in 2023 and sellers have been slow to reset valuations amid a widespread decline in multiples.Īn exception may be large corporates aiming to divest noncore assets. Spinoffs create a potential win-win at the bargaining table, but a valuation gap exists. They are among the few bright spots in an otherwise gloomy forecast for private equity M&A over the next six to 12 months. When they do, private equity will be waiting.Ĭorporate carveouts, spinoffs and divestments are expected to spark some private equity dealmaking in 2023. It is tough going in the global economy these days, and that means some large, established businesses are looking to lighten their load. In the future, Lanzone said that he’s looking for potential acquisitions, but we probably won’t see that happen for at least another year.S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week. He added that he has gotten multiple offers to buy the assets formerly belonging to AOL that are housed under Yahoo, though this isn’t in Yahoo’s immediate plans. Lanzone told The New York Times that he envisions the company’s media properties as individual products - TechCrunch is TechCrunch, Yahoo Sports is Yahoo Sports. “The intersection of media, tech, product, and content is more relevant than ever and this board represents the best minds in those categories.” “As we enter into a new era of Yahoo, establishing a powerful board of directors with strategic knowledge of diverse industries will drive greater growth, innovation, and scale,” Lanzone said in a statement. Six appointees at once is a big change, but the company is already in a period of transition under its new ownership and leadership. They join representatives from Apollo and Verizon, as well as Yahoo CEO Jim Lanzone, who joined the company last year after serving as CEO of Tinder. The six tech veterans bring varied experience in industries including digital media, private equity, entertainment and more. #ANGELS founding partner raises $25M for debut fund Moxxie Ventures
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