By Generational Equity, Special for USDR
A variety of factors are converging to make 2017 a phenomenal time to sell a mid-market sized business, reports Generational Equity, a leading mergers and acquisition advisor for privately held companies.
“The number of deals we have closed is up 20% over 2016 and even more impressively, the total value of all deals completed is up 140% over last year during the same timeframe,” said Terry Johnson, Chief Revenue and Strategy Officerwith Generational Equity. “It’s really amazing when you consider how far M&A activity has come since the depths of the Great Recession of 2009. Timing is everything and prudent business owners are capitalizing on the current market, which won’t last forever.”
Generational Equity’s experience mirrors the U.S. market in general. According to data from Thomson Reuters, 5,260 M&A deals were completed in the first six months of 2017, a 12 percent increase over the same period in 2016. Perhaps even more exciting for business owners, it marks the strongest first six months since pre-recession 2007, when 5,478 middle-market deals were closed.
Some of the factors driving this year’s M&A activity include:
- Excess capital chasing too few deals
- Overall confidence in the economy due to expectations of lower taxes and less regulation
- Aging baby-boomer owners who are looking to sell their companies
- Technology that enables efficiency in all types of companies
- Increased fundraising due to investor enthusiasm for private equity as an asset class
“Everyone’s motivation for selling their business is different, but proper timing is the secret sauce that helps an owner maximize their sale,” said Dwight Jacobs, Executive Vice President, Mergers and Acquisitions with Generational Equity. “Quite simply, now is the best time to sell a privately owned, middle market business in a decade.”
A well-planned exit strategy is another key element to the successful sale of a business. Some companies find that a properly timed sale can take a year or more of planning, explained Johnson. Generational Equity helps business owners navigate the many steps inherent in such a process.
About Generational Equity
Generational Equity, part of the Generational Group headquartered in Dallas with over 200 professionals located throughout North America, helps business owners release the wealth of their business by providing merger, acquisition and strategic growth advisory services. Their four-step approach features exit planning education, business valuation, value enhancement strategies, and M&A transactional services. The M&A Advisor recently named the company its 2016 Investment Banking Firm of the Year. For more, visit http://www.genequityco.com or the Generational Equity press room.
SOURCE Generational Equity