The headlines focus on inflation at a 40-year high and rising interest rates. While these headwinds are formidable, we believe deal activity in the GovCon market will remain stable.
Many company founders and owners—provoked by the constant changes, challenges, and uncertainties of the federal small business marketplace—are pondering if 2022 is the year to transfer their business.
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.