M&A Weekly Digest brings you a discussion about what’s driving outbound M&A activity, what trends in acquisitions the Association for Corporate Growth recently found, and certain important tax policy changes of which business owners need to be aware.
M&A Weekly Digest – October 7th, 2011
October 7, 2011 By Leave a Comment
Up this week in the M&A Weekly Digest is information about a Texas CLE (continuing legal education) event in Dallas; a very meaty article with tips for private business owners that are looking at selling their business and need guidance about preparing the selling memorandum; how private equity micro cap funds changed M&A activity; and a look at the number of deals closed through August of this year versus last year (it’s up 6%).
M&A Weekly Digest – September 23rd, 2011
September 23, 2011 By Leave a Comment
The M&A Weekly Digest features the next step–finding your buyers–in positioning your company to be buyer ready in the selling process; newly released data that indicates investors are interested in private equity firms with a middle-market specialty; and a pair of recently announced acquisitions that business owners can learn from.
M&A Weekly Digest – September 16th, 2011
September 16, 2011 By Leave a Comment
The M&A Weekly Digest today shares articles about data showing high involvement by private equity firms in the middle market; a deal between Ritz Camera and Transom Capital that shows business owners another alternative to outright selling their business; and insight into why investors view private equity favorably.
M&A Weekly Digest – August 19th, 2011
August 19, 2011 By Leave a Comment
The Private Business Owner is starting a new feature that provides M&A news and tips each week. Jumping right into this week’s highlights, there is good news for all of North America, as the U.S. re-shoring initiative has gained more traction and Canadian M&A activity was up the second quarter of this year. M&A activity continues to recover nicely and the last week of July had 11 IPOs, making it one of the busiest weeks in 2011.
For those interested in learning more about the process of selling a business, you can learn about the valuation, the next step after creating a sustainable business and deciding to sell it.
Private Equity’s Key Role in Recent Pension Fund Growth
August 3, 2011 By Leave a Comment
In the past few weeks, some of the largest pension funds in the U.S. have reported exceptional returns for the past fiscal year. And this is good news for members of the pension funds because after several years of dismal performance, a good year is welcome news indeed.
According to press reports, California’s two giant pensions had tremendous years with post-fiscal-year returns that each topped 20 percent. The $154.3 billion California State Teachers’ Retirement System (CalSTRS), said its 23.1 percent return was “remarkable,” adding that it was its best performance in 25 years. Meanwhile, the $237.5 billion California Public Employees Retirement System (CalPERS) posted a 20.7 percent return, the best since 1997.
In addition, New York’s Common Retirement Fund (NYCRF) has grown to $146.5 billion, “its highest point since markets crashed in 2008,” state Comptroller Tom DiNapoli said. The fund, which provides benefits for more than a million state and municipal employees and retirees – generated a 14.6 percent rate of return for the 2010-11 fiscal year, which ended March 30. The fund grew about $6 billion since the end of 2010.
Private Equity Banks More Capital
July 27, 2011 By Leave a Comment
As we have discussed in prior articles, equity funds are currently sitting on a sizable amount of dry powder (dry powder refers to capital raised that is unspent and available for investing purposes). In fact, a few months ago it was reported that equity firms had nearly $500 billion stocked away looking for deals to invest in.
So I find it really interesting that despite already sitting on a significant amount of dry powder, equity firms continue to have little trouble raising additional funds. According to Dow Jones, 201 U.S.-based private equity funds collectively raised $64.7 billion in the first half of the year, a 35% increase in capital committed over the $47.8 billion raised by 225 funds during the first half of 2010.
4 Fundamental Reasons Why Corporate Buyers Buy
July 26, 2011 By 1 Comment
In an earlier article published on this site, we quoted management guru Peter Drucker who said, “The buyer rarely buys what the seller thinks he’s selling.”
This quote accurately sums up the difficulty you may have trying to find a buyer for your business via your own efforts. You are too close to your company – and if you are like most business owners, you know all too well what your company needs to improve. Because of this, most middle-market entrepreneurs under-sell their company’s core capabilities and spend too much time focusing on their weaknesses when approaching the market.
M&A Activity and Strategic Players
July 20, 2011 By Leave a Comment
As we have indicated before, M&A activity has made quite a comeback so far in 2011. With strategic players flush with cash and credit flowing, it is not surprising that deals are once again resurging.
In fact according to Dealogic, spending on M&A increased nearly 33% in the first quarter of 2011 over the prior year, reaching $608 billion. And most of that activity was driven by strategic acquirers.
Mergers And Acquisitions Activity Up By 30%
July 14, 2011 By 1 Comment
If you want to sell your business, your timing couldn’t be any better. According to the ACG (Association for Corporate Growth), M&A activity is up by 30% through May of this year. The ACG’s 14,000 members include professionals from private equity firms, corporations and lenders that invest in middle-market companies, as well as law, accounting, investment banking, and other firms that provide advisory services. It is an international organization dedicated to fostering sound corporate growth primarily via mergers and acquisitions.
Because their membership is largely skewed towards dealmakers focusing on the U.S. middle market, their information is a really good barometer of M&A activity. According to the ACG, although M&A activity has not reached pre-recession levels yet, valuations have largely recovered. Given the significant amount of capital chasing deals right now, this is not surprising. In fact, according to Pricewaterhouse Coopers, we are at the beginning stages of a seller’s market.
