Our client, Advice Media, created a SaaS solution for medical professionals, checking all of the boxes for the discerning investor: recurring revenue, healthcare focus and proprietary technology. Another current client sells home wellness products direct-to-consumer at a fraction of the price of store brands. On trend, Intrepid Q3’19 Capital Markets report will shine a spotlight on the explosion of tech-enabled home fitness businesses (Peloton, anyone?).
Key Q3’19 market updates:
- The Federal Reserve lowered its target Fed funds rate, allowing quality companies to improve financing terms.
- Middle market credit spreads tightened as investors compete to invest into higher-quality opportunities and business owners have grown to expect lower priced loans.
- Selectivity is leading to fewer deals—middle-market leveraged loan activity is pacing to decrease 20% to 30% in 2019 relative to last year.
- While private equity (PE) purchase price multiples remain elevated, middle-market investors have begun to show discipline by limiting leverage to under 50% of enterprise value.