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What is the Outlook for M&A in 2021?

By Generational Equity

03/22/2021

Recently Kathryn Mulligan, Editor in Chief of Middle Market Growth, interviewed Rusty Wiley, CEO of Datasite on ACG TV.

Datasite, as we have discussed before, is a vendor that supplies Virtual Data Rooms (among other secure online products) for M&A professionals. These rooms are “opened” by professional dealmakers when they are ready to launch deals and want a secure “room” where buyers (with permission) can review potential targets.

Their data is very relevant because, as we have seen over the years, the opening of a VDR is an early indicator of M&A transactions 6-9 months out. Mr. Wiley had some interesting comments about pending deal making in 2021. You can watch the interview here:

Key points Rusty made include:

  • Datasite sees deals 6-9 months BEFORE they are closed and their data is a GREAT leading M&A indicator.
  • March/April 2020 were the lowest months in terms of new deals launched ever on the Datasite platform… However 3rd and 4th quarter 2020 launches rebounded significantly (which Generational saw as well).
  • January 2021 Datasite VDR openings were up 20% over January 2020. Those deals will be announced in the 2nd or 3rd quarters of 2021.
  • Interest rates will continue to have a big impact on deal volume in 2021. Low rates = easier-to-finance transactions.
  • Longer-term Biden tax and trade policies will have an impact beyond 2021.

So the bottom-line is this: If you own a privately held business today, and you have implemented tactical and strategic plans to make it “buyer ready”, you are in a great position to participate in the current and ongoing seller’s market.

If you have no idea how to create a buyer ready business, then you need to attend a Generational Growth and Exit Planning Conference. While there, and even if you have attended one of Generational’s conference before, you will be able to meet with our growth consultants who can have a confidential discussion about your situation.

To learn more about our complimentary conferences and our services, please use the following links:

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

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