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.
Private Equity in Action
“[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.”
2013 M&A Trends Show A Focus on Small Deals
“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.”
© 2013 Generational Equity, LLC All Rights Reserved
What can you do today so that your business will be appealing to buyers when you want to sell it? Learn when you download a free copy of Building and Exiting a Desirable Business today.
