Calabasas Capital, a boutique firm specializing in lower middle-market private companies, has seen an uptick in deal flow since the Federal Reserve paused rate hikes in Q4 2023. Co-founder David Bonrouhi shared that their focus on representing family businesses in the $10 to $100 million revenue range has been driving their business. In a market where success is driven by unique company characteristics rather than macro factors, the firm remains optimistic about future prospects.
Similarly, The Sage Group, providing corporate financial advice to consumer brands, anticipates a boom in the beauty and personal care sector fueling M&A activity in 2024. With private credit markets thriving, the firm adjusts its alternative credit products to meet market demands with creative deal structures and flexible terms.
Across the industry, boutique investment banks like Greif & Co. and DelMorgan & Co. are capitalizing on the movement of talent from larger firms to enhance their expertise and gain more market share. As M&A markets adjust to current economic conditions and technology advancements like AI, there is a collective anticipation for industries like tech, health care, and consumer goods to lead the rebound in M&A and IPO markets.
In a market where resilience, adaptability, and strategic planning are key, these boutique firms are positioning themselves for continued success in 2024 and beyond. With an eye on innovative solutions and client-centric approaches, they are ready to navigate the evolving landscape of investment banking and capital markets.
