Overall M&A activity down in 2013 – Plastics News

Andrew Petryk, Managing Director in BGL’s plastics & packaging practice, discusses the outlook for plastics industry business owners thinking of selling their businesses in 2014.

On multiples: Petryk said the upward pressure on valuation multiples also is related to the lack of quality assets in the marketplace.

“An A-company that comes to market gets a lot of attention across the buyer spectrum of strategic and private equity,” he said.

“We view it as a perfect storm or confluence of aggressive buyers and strong capital markets supporting transactions at very high valuations,” Petryk said. “The shortfall, or disconnect, is the quantity of quality deals.”