This edition of the M&A Weekly Digest features insight into the competition between strategic investors, how the manufacturing industry’s recovery will affect middle-market companies, and which industries private equity firms like to invest in. As always, click on the headlines for the full article.
Carl Doerksen explores what middle-market business owners need to do as the competition between strategic buyers and equity firms for deals grows.
“In the past few weeks, several articles have surfaced with a common theme: Despite what you are hearing on the campaign trail, manufacturing in the U.S. is making a dramatic come back. In fact, the recovery is occurring remarkably fast, according to Mark J. Perry of the American Enterprise Institute
…Obviously this has a number of implications for middle-market manufacturing entities in the U.S. right now. First, the good news: Demand for your products should be increasing.”
“Many middle-market business owners that we meet at our M&A conferences often enter the meeting with a set of notions about potential buyers that is usually based on something other than reality. And who can really blame them?
The billion-dollar deals that get all the media attention do not really reflect what happens in the lower middle-market. Most of these deals are widely underreported due to their size, leading many business owners to think that professional buyers only focus on ‘sexy’ industries such as high tech, software, and healthcare.”
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