What to Watch: The Deal Market After the IPO Rush

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The hot stock market drew a host of new names to Wall Street last year and questions for M&A going into 2022.

There’s also a fair bit of skepticism around the IPO rush that could lead to more dealmaking down the road — probably not this year, but next year and beyond.

One prominent investor told WWD the long list of more questionable IPOs in 2021 would be private equity deal prospects in a couple of years. The other group of players to watch is the companies that are still retooling, picking up new expertise, entering new kinds of markets or simply looking to build on their portfolios.

That flavor of dealmaking was seen at the end of 2021, when Nike Inc. bought the metaverse-ready RTFKT and when Crocs Inc. inked a $2.5 billion deal to buy casual footwear brand Hey Dude.that the company would be disciplined in its approach to dealmaking, while underscoring that he was still very much in the game after buying Versace and Jimmy Choo and adding them to the Michael Kors business.

“We believe that we will continue to focus only on the luxury area, which predominantly means — and I would almost say exclusively means — European luxury companies that really have the ability to be at minimum $1 billion because it’s not really worth our time, energy and effort to do something that will only be hundreds of millions of dollars, even though it’s a very sizable business,” Idol said. “It takes kind of the“So we’re active,” Idol said. “We are actively looking now.

 

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