ECONOMIC R0UNDTABLE.

• Author: Bicknell, Lindsay

Every month, Utah Business partners with Holland & Hart and Big-D Construction to host roundtable events featuring industry insiders. This month we invited mergers, acquisitions, and deals specialists to discuss national local economies, the availability of capital, and market outlook. Moderated by Cheri Waldron, executive director at MountainWest Capital Network, here are a few highlights from the event.

WHAT HAS THE LANDSCAPE BEEN LIKE IN UTAH OVER THE PAST YEAR?

PAUL SKEEN | PARTNER | EIDE BAILLY

You're starting to see a late entrance approach to this M&A cycle. You're seeing some companies looking for funding they maybe shouldn't be looking for and that creates a flood of deals that aren't ready to go to market. I don't envy the private equity investment groups who have to sort through the flood of deals and decide what's good and what's not.

TODD REECE | PARTNER | BALLARD SPAHR

There were a lot of smaller deals in the state, and that's been consistent over the last few years. But we have two IPOs with Pluralsight and Domo. You have German tech giant SAP acquiring a local company for $8 billion. It puts us on the map as a real player.

BARRY LUTZ | MANAGING DIRECTOR | WELLS FARGO

Q1 is down 18 percent globally year-over-year. If you look at the US, Q1 is up seven percent year-over-year. If you think about Utah 2015, $10 billion in transaction value, 524 transactions. In 2018, $14 billion in transaction value, 483 transactions. So think about the global backdrop down seven percent, US down 10 percent, Utah up 40 percent. The number of transactions actually is down about eight percent but the volume is up 40 percent, which is fantastic.

DREW YERGENSEN | SENIOR VICE PRESIDENT | KEYBANK

KeyBank publishes a sentiment report for middle market companies. And 70 percent of companies think there is a real downturn [coming] in 2019 or 2020. A lot of business owners feel like they're prepared for it. The follow up question was, how do you feel like you'll do in this next downturn? And there was over 20 percent that want a downturn. You hear that a lot from business owners, as we'd like a correction and feel like valuations are too high, it's too frothy, we feel more capitalized for it and prepared for it.

MATT BARTHOLOMEW | DIRECTOR | BDO

70 to 80 percent believe that there will be a correction within the next few years. I would term it as a lot of cautious optimism where private equities are just taking their time, being very discerning, and closely managing their portfolio to be able to weather a downturn.

ANDY DEREN | PARTNER | ERNST & YOUNG

Through the lens of the private equity clients I serve, they're looking for specific highgrowth assets that are going to generate a return for them during a specified period of time. And what's attractive about Utah is when you look at the technology landscape, when you look at the people that are creative, and it can be accretive to and compete directly with some of the companies not only in Silicon Valley, but also abroad.

CURTIS ROBERTS | PARTNER | KICKSTART SEED FUND

We've seen the relatively recent development of the private IPO. There is so much capital available to fund tech...