Our summary of middle market transaction news sees a fair amount of concern regarding the economy in general, uncertainty regarding specific sectors of the economy (including banking, automotive and home building for example), the tightening of credit terms and the likelihood of coming increases in capital gains as well as corporate income taxes. Transaction activity is slowing relative to last year and the year before. Purchase price multiples on average are reported off 2008 highs. We hear from the business owners we talk with everyday: “it’s tough out there”.
Under the cover of the headline news … we have received and added to our database within the last month news from both strategic and private equity buyers of over 200 completed middle market transactions.
Good offers are out there. They are taking longer to find, they are harder to accomplish in comparison to recent years, there is more work in the trenches. Deals are getting done.
- Private Equity funds currently have an estimated $1 trillion of capital searching for compelling acquisition opportunities.
- The balance sheets of Strategic Buyers (Corporations) are strong relative to recent times, positioning them to seize on favorable acquisition opportunities.
- There is great demand for high quality companies showing growth in the current environment.
- There are buyers in the current market confident of the future and believing there are great opportunities to be found in the middle market at this time.
Headlines from our Newsletter - Transaction Insights:
We’re happy to share our thoughts on middle market subjects with you in our current and recent newsletters. You can access them here electronically and, if you wish, add yourself to our mailing list to receive quarterly publication.
Current Articles Include:
- Selecting The Best Advisor For The Sale Of Your Business
- Nolan Opens St. Louis Office And Adds Team Member
- Manufacturers of electronic interconnect components, such as contacts and niche connectors, for commercial aerospace, defense and industrial applications.
- Branded consumer products companies that sell through DIY home centers, mass merchants, lawn & garden centers, farm/agricultural stores, and to professional pest control providers.
- Home health, hospice, home infusion, and other healthcare service businesses.
- Regional insurance agencies.
- Operators of full and part-time early child care centers in North America.
- Publishers focusing in the fields of Public Safety, Medicine, Nursing, Allied Health, Health Administration, and Public Health.
- Staffing companies providing quality healthcare professionals.
- Manufacturers and distributors of ready mixed concrete and concrete block products.
- Oil and Gas industry services companies and Utility Infrastructure services companies
- Building restoration and preservation companies
