The mid-market outlook with One Equity Partners

Joerg Zirener, a partner at One Equity Partners (OEP), speaks to
Mergermarket’s funds editor Harriet Matthews about the firm’s
mid-market strategy and his outlook for 2024, covering topics
including buyer and seller valuation expectations, mid-market
value creation levers, and where OEP sees opportunities for
dealmaking.


Founded in 2001 and with operations in Europe and the US, OEP’s
team has made more than 120 platform investments and more than
300 add-on acquisitions. “We look for what we want to buy,
instead of what’s for sale,” says Zirener of the firm’s largely
proprietary origination process.


Zirener is “cautiously optimistic” for 2024 as the sponsor
continues to find ways to deploy equity and support its portfolio
companies. “We are specifically continuing to look at
opportunities to support companies to add to their capabilities,
build scale, enter new markets, enhance their competitive
position in their respective markets, so all around
transformative combinations,” he says.


Areas of focus for OEP in 2024 include digitalisation and
artificial intelligence (AI), as well as the industrials sector.
It is also continuing to focus on buy-and-build, allowing its
companies to gain scale in a range of ways, including
geographically.


Based in Frankfurt, and having joined OEP in 2006, Zirener has
operated in the private equity industry across a number of
different dealmaking climates. Rounding off the interview, he
shares his perspective on how the current market compares to that
of the time when he first entered the industry.


Introduction – 0:30


OEP’s strategy – 2:42


Sourcing deals with a European and US presence – 5:01


The appeal of the mid-market – 7:52


Exits and investment pace – 12:04


Value creation levers – 17:35


Overcoming dealmaking challenges in 2024 – 20:00


Perspective on the current market – 25:22


If you would like to hear more podcasts produced by ION
Analytics, you can access the ION Analytics channel on Apple
Podcasts.


Theme music: 2012 Kick Up The Fire