2021 Was Record Year for Worldwide M&A Activity – Will 2022 Set New Records?

By Generational Equity

03/14/2022

Based on some recently released data, it is very clear that 2021 set records never seen before in the M&A arena. This is how Barron’s reported it:

2021 was the biggest boom in mergers and acquisitions history. More than $5.6tn worth of deals have already been clinched over the past 12 months, tearing through the previous record of $4.55tn set in 2007 just before the onset of the 2008-09 financial crisis, according to research from data provider Dealogic.

The hot streak looks set to continue in 2022 as cash-rich companies race to buy growth and boost their own valuations. Private equity firms are gearing up to spend the record $2.3tn of dry powder in their coffers. Soaring valuations haven’t deterred CEOs.

2021 was a record year for Generational as well and based on what we are hearing from buyers so far, 2022 should eclipse our record AND the worldwide total as well.

The next 12-18 months could be the best time to find a buyer for your company in decades.

The key questions of course are:

• Is your business “buyer ready”?
• Are you emotionally and psychologically ready to exit?

The first one does not take rocket science. You simply have to develop tactical and strategic plans that will enhance the value of your business in the eyes of buyers. Our consulting group specializes in doing just that. Over the years they have helped dozens of business owners create and implement growth plans that work. Here is what a few of them say about our process:

• The Nicklaus Companies
• Carrington Foods
• Ricardo Beverly Hills

So, as you can see, with our expert guidance, you can begin to create a buyer ready business and even enjoy the process!

We can also help with the second question above. Many of our dealmakers consider themselves to be psychologists more than financial engineers! Helping our clients on their exit journey, no matter how long that may take, is one of the greatest joys we have.

A very common theme we hear from clients post-exit is the overwhelming sense of relief that they feel:

• A Business Owner's Excitement After Selling the Business
• Selling the Company with Generational Brought Less Stress and More Flexibility
• Relief After Selling the Company

To find out how our complete suite of services can benefit you, please reach out to us at 972-232-1121 or visit our website, leave your contact information, and we will be in touch.

Carl Doerksen is the Director of Corporate Development at Generational Equity.

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