With the economy experiencing several pointed issues like inflation, and a maybe-recession looming, mergers and acquisitions are quickly becoming a viable option – especially for start-ups. Evaluating their depressed valuations, start-up CEOs are re-positioning their businesses for an M&A deal in lieu of raising rounds of funding.

Experts believe that this re-positioning in response to the market landscape could bring us to an M&A kickoff. Lockerbie & Co.'s CEO and Founder, Stephanie Lokker, comments on the state of M&A deal activity and how this could affect the post-merger integration outcome:

"The current market landscape for M&A deals are driven by CEOs who are looking for options. Focus is being shifted towards companies that are showing profit-churning momentum. We have seen private equity clients show preference towards sustainable business models as it leads to a simpler potential for scale.

"M&A deal activity will depend on how CEOs position their companies – especially in the post-integration of a merger. Ensuring that the post-merger is strategic and streamlined could lead to faster delivery of results. If the initial lift is too heavy, this could be a potential turn off to PE investors who want a shorter runway towards profitability.

"Keeping the post-merger integrations of all parties in a positive and truthful state allows everyone to execute stronger with certainty. When an integration is left as an afterthought, this can hinder the success of a merger. Remember, integration is not just about data and systems, it's about employees and their current productive state influenced by a company's culture and team. It's imperative for both sides to be on board and get it right the first time. As we now know, the post-merger plan will influence the initial post-results ultimately giving more confidence and delivering a longer runway for positive future outcomes.

"We recently led a client's launch of a $68M companywide savings initiative which led to a $3B acquisition. The positive impact of their EBITDA allowed them to increase profitability, positioning them to be acquired at their peak performance. We've noticed an uptick in the industries of: healthcare, technology, financial services, real estate, and industrial."