We hope everyone had a safe and enjoyable Independence Day. Today’s edition of the M&A Weekly Digest features a spotlight on the recent merger of Del Monte Foods and Natural Balance Pet Foods that is the perfect example of how private businesses can benefit from partnering with a private equity firm. We also discuss a 2013 M&A trend that continues – business buyers focusing on small deals.
“[W]e examined a partial sale of a company to a private equity firm with the eventual goal being the proverbial second bite of the apple when a much larger entity is sold or taken public several years from now.
Today we highlight the culmination of this goal with a deal that was recently announced. Although details of the transaction were not disclosed, by reading between the lines you can see that this secondary transaction was truly a win-win scenario for all parties.”
“As we have discovered in past articles about M&A trends in 2013, the lower middle-market, which Generational Equity defines as being deals valued below $100 million, has become quite popular with professional buyers. This holds true not only for the U.S. but also in Canada.
Recently an article was published in Mergers & Acquisitions magazine that refutes this idea of mega-deal monopolies. Entitled ‘Small Deal Sweet Spot,’ the author, Anthony Noto, interviewed a number of key professional buyers who agree that the lower middle-market is quickly becoming a haven for buyers.”
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