This edition of the M&A Weekly Digest features content about how return on investment factors into selling a business; where the majority of this year’s private equity activity is; and what the M&A projections are.
“Even though you may not want to admit it, there will be some element of risk associated in acquiring your company. Understanding this from a buyers’ perspective will help you to explain the challenges facing your business and to mitigate concerns over your investment. This will lower the ROI that a buyer will need, thereby raising your value.”
According to Pitchbook‘s Private Equity Breakdown,
“[T]hrough the third quarter of this year, approximately 40% of all deals closed by equity firms were valued below $50 million dollars. Nearly 75% of the companies acquired by equity firms have been valued below $250 million.”
“According to a recent article in the Financial Times, global business executives expect ‘a 22% increase in global and acquisition volumes in 2012.’ Thomson Reuters gathered this information via interviews with 125 worldwide business leaders, ranging from small regional companies to very large multinational organizations.
“According to those surveyed, acquisition activity will continue to be driven by ‘pressure to keep up with acquisitive competitors and private equity returning as more active buyers of assets.'”
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