Jim Jackson ,
Co-CEO ,
The Alta Group

Jim Jackson provides an overview of M&A activity in the equipment finance industry from 2022 as well as an assessment of the current market. While independents continue to be an attractive acquisition target for banks, several challenges block the return of more robust acquisition activity.

By Jim Jackson, Co-CEO, The Alta Group

The economic environment that created a robust M&A market in 2021 for equipment finance companies carried into the early months of 2022, providing the promise of another banner year. The Dow Jones Industrial Average, which achieved a record high on December 31, 2021, remained relatively strong and markets continued to enjoy a low-interest-rate environment. The Federal Reserve did its best to assure us that inflation was transitory and would resolve itself and return to target levels as the economy adjusted to supply-chain issues. In fact, prior to March 17, 2022, the Federal Reserve confirmed this position and continued to keep the Federal Funds Target Rate at 0% to .25% and continued its bond-buying program to stimulate the economy, all while inflation was marching toward a 40-year record high of 8.5% by the end of the first quarter.

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