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Resurgence in M&A Transactions

By Generational Equity

09/21/2020

Because they know that the current economic impacts of the COVID-19 pandemic are short term, professional business buyers have been extremely active over the past few months.

In fact, Generational Equity closed more deals in August 2020 than ANY month in our entire existence!

Why would this happen in the midst of this time of economic challenges?

Because our deal teams work hard to help buyers understand the true VALUE in each of our clients and what they will bring to their operations on a tactical and strategic level for the longer term.

A recent article in the L.A. Times supported this trend, reporting:

Monthly Refinitiv data show June and July each registered more than $300 billion in overall M&A activity, compared with $100 billion in April and $130 billion in May. “The backlog is very busy, and I would expect things to continue, barring a major event that brings things to a halt,” said Alison Harding-Jones, Head of Mergers and Acquisitions for Europe, the Middle East and Africa at Citigroup.

A series of blockbuster deals has led a resurgence in merger and acquisition activity since the start of July, with companies rushing to prepare themselves for the recession and dusting off deals that were shelved because of the pandemic. Eight deals of more than $10 billion have been signed in the past six weeks, according to Refinitiv data, making it the fastest start to the second half for megadeals since 2007 when there was a merger and acquisitions boom before the financial crisis.

What does this mean to you, the owner of a middle market business? Plenty!

Based on our experience the past few months, buyers are more active now than any time since early March of this year. This means that it is a great time to be planning your exit, and certainly a great time to start the process since it takes several months to close an optimal deal once you make the decision to move forward.

Our team of growth consulting and exit planning professionals at Generational Equity are here to help you on this journey. Remember this:

  • There are business owners that HAVE to exit
  • There are business owners that PLAN to exit

It is far better to be in the latter group based on our decades of experience. And we can help you get there using our proven consulting, business building, and exit planning processes. If you are planning to exit your business in the next one to five years, reaching out to us and attending one of our growth and exit planning conferences could really help you exit for an optimal value.

To learn more about how we can help you on your exit journey, please use the following links:

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

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