Cinven Acquisition of TaxAct Raises Questions About Propriety

One effect of sustained inflation that (rightly) isn’t getting as much attention as rising food and energy costs is the effect on mergers and acquisitions. As the overhead cost to maintain a business soars, the cost of purchasing those businesses decreases. In February 2022, the value of M&A deals was down 30% from the same month in 2021.

While overall deal volume was down, the software and internet services sector has remained busy. Sectors outside of the technology realm have largely taken a step back from expanding while they wait for better market signals for what the short-term future holds. One ...