Today’s M&A Weekly Digest features news about how private equity firms offer a growth strategy for private business owners, the latest M&A news, and a summary of the most recent Thomson Reuters deal-making rankings. As usual, click on the headlines to read the entire articles.
Private Equity Firms Offer A Strategy for Growth
“In the last election cycle private equity firms were analyzed, discussed, and – in some cases – vilified like never before. Some of the campaign rhetoric was based on less-than-substantiated facts. No matter which side of the campaign you were on, the reality is that private equity firms that focus on middle to lower middle-market companies do so for one compelling reason: to find targets to invest in and help grow so that their investors earn a solid return.
Despite all the stories in the press, most equity firms focus on much smaller deals than you would think. This was once again proven in Pitchbook’s latest report, Pitchbook 2013 Annual Private Equity Breakdown, which was published a few weeks ago.”
M&A News
“A few weeks ago I read an interesting article in Mergers and Acquisition magazine, a publication of the Association for Corporate Growth. Entitled ‘2013 Could See an M&A Resurgence,’ it was written by Frank Aquila, co-head of Sullivan & Cromwell’s general practice group. Around the same time the article was published, Mr. Aquila was also interviewed by Axialmarket and the topic, not surprisingly, was his view on M&A news in 2013…
In both the written article and the interview, Mr. Aquila does a great job of presenting the facts relating to M&A news in the coming months. And he does so in a very even way. In fact, in the written piece, he lays out two scenarios: a worst case and best case, if you will.”
The M&A Reality
“[I]n a recent Reuter’s article, Accenture estimated that worldwide, firms need approximately $5 trillion in new revenues annually during the next several years to simply meet shareholders expectations of ROI (return on investment).
This is creating quite a dilemma in boardrooms around the globe. How can a company grow at a +8% clip when its resident economy is only expanding at 2%?
The answer is simple: If organic growth will not provide ample opportunity for expansion, acquisitions are the only real option.”
Generational Equity Once Again is Top-Ranked M&A Firm
“Generational Equity – a leading mergers and acquisitions advisor for privately-held, middle-market businesses – is pleased to announce that once again it is one of the top ranked M&A advisory firms for deals valued below $50 and $100 million, respectively.
Rankings are compiled annually based on deals submitted to Thomson Reuters. The 2012 rankings can be seen by clicking on the following link: Thomson Reuters 2012 Middle-Market Rankings.”
© 2013 Generational Equity, LLC All Rights Reserved
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