Today’s M&A digest covers how the current state of uncertainty detrimentally effects business planning, the amount of private equity dry powder by region, and determining the right time to exit your business. As usual, click on the headlines to read the full pieces.
How Uncertainty Detrimentally Effects Business Planning
“The author of the article in Fortune, senior editor Geoff Colvin, interviewed a number of CEOs about what is troubling them about the future. Everyone’s No. 1 concern – more concerning than taxes, elections, and the economy – was uncertainty.
If the business community knows the rules, historically, under all types of administrations and congresses, they will adapt and come up with ideas and ways to win. It’s just that now – because of polarization – business owners are frozen, plans are on hold, and the future is considered tenuous.”
Private Equity Dry Powder By Region
“Not surprisingly, North America is where most of the committed capital resides. Of course the question everyone has been asking for the past year or so is when will this committed capital come off the sidelines and get into the game? The answer is soon!
Most of these funds have a shelf life of 5-7 years. If the funds are not invested in that time frame, then the capital needs to be returned to its investors. A significant portion of this capital was raised in 2007 and 2008 in the pre-recession years and will need to be invested during the next 12-18 months.”
Exit Planning and Timing
What is one of the two key parts an exit plan should cover? You guessed it: timing. Find out more about how to exit when you want to (as opposed to when you have to) and how you’ll know when “the time is right.”
© 2012 Generational Equity, LLC All Rights Reserved
Are you a business owner that’s beaten down by all the uncertainty regarding the future? Then learn what you need to know to get started with an exit plan. Download a complimentary whitepaper from M&A advisory firm Generational Equity called Exit Planning Basics: What You Need To Know Before You Start.
