M&A activity in the gaming industry is on the rise as valuations remain low, prompting companies to make strategic acquisitions. With private equity firms also entering the market, more deals are expected to follow suit. Recent acquisitions include Evolution acquiring Galaxy Gaming, Apollo acquiring IGT and Everi, and Standard General purchasing Bally’s.
These deals are being made at lower prices compared to a few years ago, making them attractive opportunities for buyers. David Berman, an investment banking advisor, played a key role in these transactions and predicts more deals to come as interest rates decline and private equity firms have lower cost of capital.
Motivated sellers, an aging ownership demographic, and a pool of small supplier companies make the gaming industry ripe for further consolidation. Investors are advised to look beyond immediate earnings outlooks as more M&A activity is expected to reshape the market.
In addition to M&A news, Gaming & Leisure Properties has seen its stock reach new highs, showcasing its ability to grow and profit by focusing solely on gaming properties. CEO Peter Carlino’s disciplined approach and focus on long-term growth have proven successful, earning the company accolades from analysts.
As the gaming industry continues to evolve, companies like Gaming & Leisure Properties set the stage for future growth and profitability. With a keen eye on acquisitions and a commitment to the gaming sector, these companies are poised to thrive in a competitive market landscape.