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Can a Private Equity Partner Help Grow Your Business?

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Eric Czepyha, Director, Business Services

U.S. private equity deal activity reached new heights in 2021. Private business investments exceeded $1.2 trillion for the year, a steep increase from 2020 and a more than 50% increase from the previous annual record.

Factors contributing to the significant uptick in 2021 included attractive debt financing, willing sellers looking to avoid looming tax hikes, and private equity firms eager to return to the market after a slowdown the prior year.

PE Deal Activity 

1920px-graph-01 Source: PitchBook, Geography: US *As of December 31, 2021 Deal value ($B) Estimated deal value ($B) Deal count Estimated deal count 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* 3,089 3,529 3,351 4,187 4,394 4,486 4,913 5,710 5,759 5,709 8,624 $338.8 $370.0 $431.2 $523.9 $484.9 $590.6 $642.6 $725.4 $754.9 $689.6 $1,237.5
768px-graph-01 Source: PitchBook, Geography: US *As of December 31, 2021 Deal value ($B) Estimated deal value ($B) Deal count Estimated deal count 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* 3,089 3,529 3,351 4,187 4,394 4,486 4,913 5,710 5,759 5,709 8,624 $338.8 $370.0 $431.2 $523.9 $484.9 $590.6 $642.6 $725.4 $754.9 $689.6 $1,237.5
375px-graph-01 Source: PitchBook, Geography: US *As of December 31, 2021 Deal value ($B) Estimated deal value ($B) Deal count Estimated deal count 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 *2021 8,624 5,709 5,759 5,710 4,913 4,394 4,486 4,187 3,351 3,529 3,089 $338.8 $370.0 $431.2 $523.9 $484.9 $590.6 $642.6 $725.4 $754.9 $689.6 $1,237.5

Despite rate hikes and economic uncertainty this year, many experts believe that private equity funds will continue to remain active. 

Download the full paper to assess whether, how and when to bring in a private equity partner to invest in your business.

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Disclosures

This information is not intended to be and should not be treated as legal, investment, accounting or tax advice and is for informational purposes only. Readers, including professionals, should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal, accounting or tax advice from their own counsel.  All information discussed herein is current only as of the date appearing in this material and is subject to change at any time without notice.

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