What do you see as the overall trend of mergers and acquisitions for commercial AV companies this year?
We expect that the mergers and acquisitions market (M&A) for commercial AV businesses, as well as the broader workplace-technology solutions category, will continue to show strength and activity (despite the macroeconomic pressures we continue to hear about), says Ari Fuchs.
There are many factors pointing in this direction: We know the companies that made it through the pandemic, did so with a newfound resilience, strong balance sheets and more experienced leadership. On a micro-level, more of these players have upbeat expectations for their businesses and continue to experience strong billings and backlog. These factors, when combined, make these companies ideal candidates for acquisition from both strategic and private-equity buyers that are looking to achieve inorganic growth or to enter this industry. That’s especially true if we end up in a slower-growth environment.
