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EY shares CEO optimism on mega deals; Super Bowl shines spotlight on PE’s role in sports

Good morning dealmakers, thank goodness it’s Friday.

It’s Obey Martin Manayiti here with the newsletter this morning.

As we’re preparing for the thrills of touchdowns, commercials, the half time show and Taylor Swift sightings at Sunday’s Super Bowl, we’re going deep today on private equity investments in the world of sports. PE pros are hopeful the NFL may soon allow private equity owners.

But we’ll start with a recent report from EY that details growing optimism for mega deals this year.

And for our Friday listicle, we’re rounding out the week with a look at five PE-backed CPA deals.

Mega deals are back

CEOs and PE leaders are equally upbeat about the M&A outlook for 2024, with a large majority of both expecting a return of megadeals, as the overall deal market picks up after a subdued 2023, finds a recent report from EY.

Upgrade to the premium version of the Wire to learn the findings.

Closing the books

Certified public accountants are in high demand, mainly because of the growing number of complexities and compliance requirements in the services that they offer. CPA is also a field well-known for its war on talent. PE Hub recently noted a trend in which private equity firms are also on the hunt for accounting and advisory firms.

I featured five recent deals today, including the investment from Hellman & Friedman and Valeas Capital Partners in Baker Tilly. For more on that deal, see my Deep Dive, including a joint interview with Blake Kleinman, a partner at H&F, and Ed Woiteshek, co-founder and managing partner at Valeas.

And for more PE-backed CPA deals, upgrade to the premium version of the Wire.

Wide world of sports

Private equity pros are eagerly awaiting next month’s National Football League annual meeting when recommendations may be made about allowing institutional capital to invest directly into franchises.

PE Hub has seen a big uptick in private equity interest in sports teams and all things sports-related, from tickets to training.

If you’re looking for some weekend reading, check out these stories on PE Hub:

• NFL ownership rule changes will help PE firms score more deals

• The MVPs of private equity: Top PE-backed sports deals of 2023

• Mark Patricof on teaming up with Joe Burrow, Michelle Wie West, Steve Kerr and more

We expect to see many more deals in the sports arena in 2024.

That’s it for today. MK Flynn will be back with more on Monday.  

Have a nice weekend,

Obey

Read the full wire commentary on PE Hub ...

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