Middle Market Growth - 2022 Guide to Dealmaking // Special Edition

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2022 GUIDE TO DEALMAKING

satisfaction ratings. With Globalization Partners, you can succeed faster. www.globalizationpartners.com Cyberattacks Pose Greatest Threat to Middle-Market Businesses As technology became more important to businesses amid the pandemic, cyberthreats became more of a risk to U.S. companies. Businesses expect cyberattacks to remain a risk in 2022 as working from home or hybrid models become the norm. MMG partnered with QBE Insurance and surveyed U.S.-based middle-market C-suite leaders about the risks of doing business in 2022. Some of the risks that business owners are worried about include the impact of regulatory changes, retaining talent, cyberthreats and business interruption, including supply chain issues. Survey respondents noted that the macro risk surrounding the pandemic has declined.

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About QBE Insurance Group Limited: QBE is the largest ASX Listed Insurer by both gross written premium and market capitalization. It provides insurance services mainly to Australia, North America, Europe and the Asia Pacific region. In 2019, QBE had over 11,700 employees in 27 countries worldwide. www.qbe.com/us Supply Chain Strain Hits the Middle Market Supply chain issues have hampered business for the better part of a year and the disruptions are expected to carry into 2022. Heightened demand for goods and services during the pandemic, factory and port shutdowns from COVID outbreaks and labor shortages at supply sites have all exacerbated the problem.

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The situation is unprecedented and many companies are changing the way they do business. Some are looking at solutions including reshoring, diversifying the supplier base and upgrading technology.

Four Sectors Primed for Growth With the help of Grata, our editorial staff and Grata analysts identified four industries that are seeing growth in terms of employees and clients. These areas are fertile ground for investment activity from private equity. The pandemic accelerated an already active investment scene in home health. The proliferation of Black Lives Matter protests in 2020, meanwhile, gave a renewed focus to inclusion and several beauty brands are now offering more skin care and hair care products for customers from a broader range of races and ethnicities. As many consumers shopped at home during lockdowns, Amazon consultants and re-sellers became a lucrative part of the market, leading to greater interest in e-commerce. Staying at home also propelled an increased interest in gaming and “esports.” The industry is expected to continue growing, albeit not at the same rate it did during COVID lockdowns.

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About Grata: Grata is the leading private company intelligence engine. With Grata, dealmakers gain unparalleled visibility into the private market with extensive, up-to-date data and comprehensive information on over 6 million middle-market businesses. Grata’s smarter search experience helps users discover deep contextual company insights in order to gain an informational advantage and win high potential deals. www.grata.com

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