Jason Brauser Quoted on Trends in Oregon M&A Activity

In a new article, corporate partner Jason Brauser shared with the Portland Business Journal his insights on recent trends in M&A activity in Oregon.

According to a PwC report, deal volumes for a region including the state were 3% lower for the for the first half of 2023 when compared to the same period last year, while deal values declined by 36%.

Reasons cited for reduced M&A activity include inflation, higher interest rates, and the conflicts in Ukraine and Israel, as well as the uncertain political climate in the U.S.

Brauser notes that these factors have contributed to transactions taking longer to bring to completion. “Buyers are taking their time with due diligence,” he said. “Buyers are more willing to walk away.”

The increase in interest rates, in particular, has made it more difficult to finance acquisitions through the use of debt.

“The challenge you have, particularly with [private equity] firms, is they rely on debt financing to get their transactions done, and because of inflation and its impact on interest rates . . ., it’s gotten more expensive to finance those transactions and lenders are also being pickier,” Brauser said.

Read the full article here.