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From the Desk of Ryan Binkley, President & CEO of Generational Equity – January 2018
By Generational Group
01/24/2018
Hello and welcome to our January 2018 eNewsletter! Happy New Year and I hope that both you and your business are thriving so far in 2018.
Because of the diligence of our deal teams, and significant buyer activity in 2017, last year turned out to be a record year of deal closings for Generational Equity. We anticipate 2018 to be a continuation of the strong seller’s market we have experienced over the past several years for a variety of reasons:
- Recent tax reform legislation, which will generate significant cash for corporations to use for acquisitions
- Record amounts of dry powder with equity firms that needs to be invested
- Continued confidence in the economy on the part of buyers
Our lead article in this month’s eNewsletter explores the factors driving this market and points out one important fact: Buyers want to see more companies for sale!
The record level of M&A activity over the past several years has reduced the pool of qualified targets. This is great news if you are the owner of a middle market business today. Your company could be quite attractive to a variety of buyers if you decide to sell!
However, since seller’s markets don’t last forever, it is critical for your future to investigate current M&A market trends and how they may impact you. Right now, sellers have significant leverage with buyers, which is creating higher purchase prices.
Contact Generational Equity for Professional M&A Advice
Generational Equity is always here to assist with your exit journey. Over the past several years, we are proud to have helped more lower middle market companies (those with valuations up to $100 million) successfully exit their businesses than any other M&A advisory firm in North America.
Our Dealmakers are skilled and experienced in negotiating within our vast buyer network and we are ready to meet with you and discuss your specific opportunities.
Since we are expecting to see strong buyer interest in the lower middle market in the ensuing months, we encourage you to reach out to us if you are interested in attending an exit planning conference or if you prefer a face-to-face private meeting with one of our M&A professionals to consider your options.
We believe that it is vital for business owners to develop succession plans that will protect and defend the significant equity they have built into their businesses. Now is the time to begin the process of making an informed decision.
So please call us at 972-232-1121 or send an email to info@generational.com if you would like information about a conference in your area or if you would like to meet with us one-on-one. Find a conference near you using this link.
And if you haven’t already done so, please feel free to subscribe to our dedicated exit planning blog using this link:
Subscribing will allow you to stay up-to-date on the latest trends in M&A planning and provide timely research to give direction as you consider your exit timing and strategies.
Thank you and I wish you and your business all the best in 2018!
Ryan Binkley
President & CEO, Generational Equity