Lower middle-market companies were major players in last year’s deal activity and that continued through the first half of 2022, as well-capitalized buyers continued to seek strong, innovative privately held companies.
For most small business entrepreneurs, your company is your most valuable asset. Understanding its value is important for both growing your business and planning an exit. So how do you establish and maintain an accurate valuation of your company?
While current macro factors will have an impact on M&A, we think there are important considerations that warrant optimism especially in the lower end of the middle market (private companies with $25M to $150M in revenues) where deal activity will continue to be driven by two factors.
With a lot of investment capital on the sidelines, and valuations still favorable, a lot of company founders and owners will decide that this will be the year to sell their business and move on to their next chapter.
Selling your company is a life-changing event. But for most sellers, one question always rises to the top: Who’s the buyer taking over my legacy?
Will we see a time when the demand for top talent so far outpaces supply that companies resort to acquiring an entire workforce rather than individual employees? The fact is, we are already seeing it.