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.
If you are a company owner with a potential acquirer circling around you looking to make a deal, congratulations on making it this far. Think about all the hard work and vision it took to get from the initial company launch to this exciting next phase, and commend yourself and your team.
Private equity investors, roaring ahead to another prolific year of deals, are increasingly eyeing buys hidden away in the lower middle market: companies valued between $10 million and $100 million.