From the Desk of Ryan Binkley, President & CEO of Generational Equity – July 2018

By Generational Group

07/12/2018

Hello and welcome to our July 2018 eNewsletter!  

If you are like many business owners before attending our exit planning conferences, you are most likely unfamiliar with the term “add-on” acquisition. This is referring to the strategy most private equity firms use to expand their portfolio holdings. After an initial investment in an industry, they then grow the holding company by making add-on acquisitions of additional synergistic businesses.

Our lead article in this month’s eNL examines this deal structure in detail and provides us with an amazing statistic that all middle market business owners thinking of selling should know:

• As of Q2 2018 roughly half of all buyouts globally and more than two-thirds of all buyouts in the U.S. are add-ons. In the first quarter alone add-ons accounted for 70 percent of all buyout activity.

This is a significant change in the way buyers have operated in the past and presents well-prepared business owners with a tremendous opportunity in one of the strongest seller’s markets in years.

Contemplating Your Exit Plans? Talk to our M&A Professionals

Keep in mind that Generational Equity is always here to assist with your exit journey.

Over the past decade we are both privileged and 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. In 2017 alone we helped transfer nearly $700 million in wealth to our clients and we are approaching $4 billion transferred overall.

Our dealmakers are skilled and experienced in negotiating within our vast buyer network and we are ready to meet with you to discuss your personal goals and objectives.  

Please reach out to us if you are interested in attending a complimentary exit planning conference to discover how and when to sell a business for maximum value. Alternatively, you may prefer to arrange a face-to-face private meeting with one of our M&A professionals to discuss your options.

We believe that it is vital for business owners to develop exit strategies that will protect and defend the significant equity they have built into their businesses. We are passionate about guiding our clients through the M&A process and helping them make confident, informed decisions.

So please call us at 972-232-1121 or send us an email if you would like information about a complimentary conference in your area or if you would like to meet with us one-on-one. If you would like to find an exit planning conference near you, use this link. 

And if you haven’t already done so, please feel free to subscribe to our exit planning blog and smart M&A insights using this link:

• Generational Equity’s M&A Blog

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 family continued success in 2018!

Ryan Binkley
President & CEO, Generational Equity