Navigating M&A in a Market Downturn

Navigating M&A in a Market Downturn

April 24, 2025 · 26 min · Season 3 · Episode 20

About this episode

This episode discusses strategies for navigating M&A deals during market downturns, focusing on maintaining long-term value and fair deal structures.

Navigating M&A Deals Through Market Downturns Market volatility got you worried about your M&A deal? Recent market downturns, even seemingly moderate ones impacting portfolios by around 6%, can significantly affect a company's sellable EBITDA, creating uncertainty for both buyers and sellers deep in the transaction process. In this episode, we tackle this challenge head-on. Sellers understandably don't want short-term market dips to penalize their long-term value, while buyers need confidence in current valuations for their stakeholders and lenders. How do you bridge this gap and keep deals moving forward fairly? We explore the perspectives of both parties, emphasizing that successful M&A is a long-term partnership, not an opportunity to exploit temporary market fluctuations. Discover the practical ways market activity can impact deal structure – from valuation adjustments to putting retention payments at risk. More importantly, we dive into creative, actionable solutions that go beyond simply pausing or walking away. Learn about strategies like: Using historical AUM or revenue periods for valuation benchmarks. Structuring earn-outs tied to future dates, allowing time…

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Host: Alaris Acquisitions

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