Coming off a year when rising valuations limited fund managers’ ability to source and close deals, private equity leaders are anticipating another year of moderate deal flow volume. The recent PErspective Private Equity Study conducted by BDO USA found that only 15 percent of GP respondents predict they will close more than five deals in 2014, which is a drop from the 22 percent of fund managers who predicted in 2013 that they would close more than five deals.
This will be the theme for 2014. Buyers are looking for solid companies to buy in most industries. Healthcare, staffing, PEOs, medical practices, manufacturing, distribution, technology, internet and business services are all great industries right now.