Right now, we’re experiencing tremendous volatility in public markets. While earnings per share have been at record highs for some time, the market seems content with that level of performance. This volatility is caused more by geopolitical issues relating to tariff’s rather than some underlying financial metrics. Many owners of private companies are nervously watching public market volatility as it pertains to the value and market for their private companies.
Historically, investment in private companies outperforms that of public markets. Buyers and investors want to be in the private market – it’s less volatile and has greater returns than the public market. Even with the volatility of the last month, we have seen no slowdown in the appetite to acquire and invest in private companies. We’re seeing record high values being paid for private companies. In fact, public market volatility looks like it may help the private market.