The NorthView Compass
M&A is still white hot.
Inflation – is it transitory or here to stay? The argument can be made that the Fed’s timing back of its stimulus is too late, and too little, and too slow.
Employment – what are employers doing to retain their greatest asset, high quality talent, and what to expect as it relates to morale and the potential for turnover?
Tax Changes – House Democrats have officially released their planned changes in tax code.
Hopefully the curated content in this month’s newsletter can help provide some answers that can be applied to your situation.
Happy VJ Day (Sept 2), Labor Day (Sept 6), Yom Kippur (9/15), Constitution Day (9/17), and a fun favorite, National Talk Like a Pirate Day (9/19). Have a great month Mateys!
About NorthView Advisors
NorthView Advisors is a full-service, lower-middle market focused, investment bank that prides itself in establishing and maintaining meaningful, personal relationships with its clients and investors.
So Many Things to Discuss, but First:
For those who witnessed it in real-time, whether firsthand in NYC or live on TV, we remember exactly where we were 20 years ago on September 11, 2001. Never forget the 2,977 innocent lives who died that day.
Remember their legacy, but also how united we were as a nation. One United States of America! Praying for a return to that same sense of both national and humanitarian pride regardless of our differences of opinion, appearance, or beliefs.
God bless those innocent and brave souls who perished and God bless America!
Inflation concerns aren’t anything new these days. Is it transitory – that is, temporary – or here to stay? The Fed seems to believe the former. Lead times, pressure on inventory, pressure on supplies, pressure on unemployment are all factors contributing to high inflation readings and leading to some concern among economists and investors that these cost increases will not fade away.
“Inflation Guy” has been Waiting Years to Tell You About the I-Word – Bloomberg
So what? What does that mean for your company? Here’s an excerpt from an article that helps answer that question…
“We just have to take a leaf from those who have always won the inflation war: individuals and entrepreneurs who had taken out loans and discovered that higher prices make their debt worthless by comparison. They were able to pay it off until it blew away. And, exports are cheaper against foreign competitors for businesses in commodity and overall goods trade/export, thanks to the falling value of the local currency.”
How Global Inflation Will Affect Businesses and How They Can Prepare – Forbes
M&A, Inflation, Employment, and Taxes...Oh My!
In what seems to be a recurring theme, M&A markets continue to break records and set a blistering pace as we head into Q3 2021. This time we take a look at Private Equity’s role and their impact on the marketplace. If you own a business, this is a story you should be paying attention to because it’s driving enterprise value across multiple industries.
In looking at the first half of 2021, one overarching theme stands out: deal size is driving the market, with the average deal size up 48% compared to the same period last year. And PE firms aren’t just writing record-breaking checks these days, they’re collecting them too and almost just as quickly. That means we’re likely going to see continued strength in M&A markets driving premium valuations from both financial and strategic buyers as they work to keep up and compete with one another for quality deal flow.
Not to beat a dead horse here, but if you’re remotely thinking about selling, valuations are near all-time highs, so now may be a good time to jump in.
A dedicated resource for M&A news, announcements, and insights
Stop us if you’ve heard this one before, but here’s another reason behind surging M&A markets. Somewhere our Econ 101 professors are shouting “I told you so!” as business owners respond to changing incentives and decide to sell in the face of looming tax increases. With proposals featuring a near-doubling of capital gains tax in the discussion, many more are sure to follow suit.
A dedicated resource of curated content for CFOs
Consumer prices continue to rise but have begun to taper off starting last month. Still, inflation is well above Fed target of 2% and is expected to remain a factor as a result of raw materials, labor, and logistics as inflation outstrips price. What actions are other CFOs taking to combat inflation?
Inflation Pressures Forcing CFOs to Take Action – CFO
Multiple stimulus packages with expanded unemployment benefits coupled with the growing concern of COVID-19’s Delta variant have some workers hesitant to return unless they are incentivized enough to do so. What does it take to encourage those on the sidelines to return to the workforce?
Wages Keep Rising as Employers Try to Lure Reluctant Americans Back to Work – S&P
Job hopping heats up
It’s already hard enough to find employees these days, but retaining them may be proving to be even harder in this market. The primary reasons employees might be seeking a new job: Wage hunting – 46% of women and 34% of men say hope for higher wages is their priority; available benefits care also a concern; handling of employees during and expectations on the transition from WFH to back in the office; simply looking for a change. It’s an employee market, so be prepared.
Job Hopping Heats Up: About 65% of US Worker are Looking for a New Job – Fortune
Other Recommended Reads
Why Lower Mid-Market Fundraising Will Not Slow Down Anytime Soon – Mergers & Acquisitions
House Democrats Plan 26.5% Corporate Rate as Part of Multitrillion Tax Hike – Politico
Inflation brings Big Changes in Tax Brackets – Accounting Today
From Zippers to Glass, Shortages of Basic Goods Hobble U.S. Economy – Reuters
U.S. Inflation Starting to Look Like a Stimulus-Led Outlier – Bloomberg
Football is Back!
Football is back! That also means its time to pick a Fantasy Football Team Name. Our favorites are:
Jake Fromm State Farm, Make America Gronk Again, Catalina Wine Mixon and Kittle Corn
Whatever you name your team, just don’t go too far without drafting a RB.
Also, can someone please tell the Atlanta Falcons that they were in the Super Bowl just 4 years ago? Another one bites the dust courtesy of Tom Brady, just didn’t think he had the power to cripple a franchise this badly.
At least the Hawks and Braves are stacked with young, promising talent. Go BRAVES!
Speaking of Brady, his old boss, Robert Kraft is pushing to host the 2026 World Cup.
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