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.
The human elements of a deal can rival the balance sheet and other financial metrics in terms of importance. The human factors—including communication—are also the most likely to be underestimated by owners looking to sell their companies.
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.
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.
The due diligence process was never meant to be fun — and it isn’t. But for too many business owners it is downright painful. But due diligence doesn’t have to be this way. By adopting the right mindset and taking the right steps, companies can shine during this process.