This week’s M&A Weekly Digest contains articles discussing the economic impact of private equity firms and the effect that widespread baby boomer retirement will have on mergers and acquisitions activity. As usual, click on the headline to read the full piece.
The Economic Impact of Equity Firms
“A few short months ago, during the buildup to the presidential election, we all heard more than we wanted to about the evils and transgressions of private equity firms. Over time, we have looked at a number of reports that debunk much of this thinking, learning that the U.S. economy would grind to a slow halt without private capital.
A new report by the Association for Corporate Growth in conjunction with the Edward Lowe Foundation, The Institute for Exceptional Growth Companies, and PitchBook Data created a very interesting study utilizing three independent databases to create GrowthEconomy.org, an analysis that truly shows the positive economic impact of equity firms on the economy.”
How Baby Boomers Will Impact M&A
“Last year, especially towards the end of the year, the primary catalyst in middle-market M&A activity was the drive to close deals before year-end to avoid the impact of the increase in capital gains taxes on January 1, 2013. Generational Equity saw this first hand as we closed more deals in December than ever before as our clients rushed to complete their transactions in advance of the cap gains increase.
Now a new trend has emerged, one that most likely will drive M&A activity for some years to come: Baby-boomer business owners are hitting retirement age, creating what can be called the baby boomer impact.”
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