Today we discuss how companies choose to grow through acquisitions, how small businesses are the backbone of the economy, and succession planning tips. Click the article headline to read the piece in its entirety.
Growth via Acquisitions
“A few weeks ago we examined data from Pitchbook (a leading equity-firm-focused research group) that indicated that so far this year, equity firms have been aggressively expanding their portfolio companies via synergistic add-on acquisitions. Based on their research, for the first time ever, more than half of all equity firm acquisitions were add-ons during the first quarter of this year.
Since then I have seen quite a few deal announcements that indicate this trend is continuing. A perfect example was announced last week”
Small Businesses – The Backbone of Our Economy
“I recently read an article that summarizes Generational Equity’s view towards our client base. The title was “Six Reasons for You to Love Small Businesses.” Written by Nellie Akalp, the piece highlighted why small businesses are vital to the U.S. economy. She cited a Public Affairs Pulse Survey from last year, which showed that 88% of all adults had a favorable view of small businesses while only 16% said the same thing about larger companies.
That is pretty amazing when you think about it. But it makes sense because who did we have to bail out in 2008? It wasn’t the small business community or entrepreneurs – that is for sure.”
Succession Planning Tips
“We regularly meet with business owners who tell us that they plan on giving their businesses to their kids or other relatives when they reach a point of retirement. When we ask them, ‘Have you actually sat down and discussed this in detail with your kids?’ we too often get a blank stare. Or the answer is, ‘Well, I just assume they would want the business.’
That is the most dangerous assumption.
You need to ask yourself some simple questions if you are even considering a business transfer to a relative.”
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