To begin this edition of the M&A Digest, Carl Doerksen analyzed data shared in PitchBook’s Private Equity Breakdown report to answer common questions business owners have about PE firms, such as:
- What is a private equity firm’s ideal deal size?
- What acquisition strategy is becoming more popular with private equity groups?
- Which industries interest private equity firms?
- In which industries do PE firms employ the add-on strategy?
Then, we explore first quarter data that points toward an upswing in mergers and acquisitions activity, how federal tax reform can affect middle market business owners, and we identify the most active strategic acquirers.
Early Indicators Reveal Surge in Mergers and Acquisitions
“M&A activity trends can be closely correlated to several leading indicators. One of the indicators is the number of deal launches. Logically if deal initiations are increasing, one can assume that deal closings will eventually go up as well. Of course, as with any sales process, 100% of new engagements do not close within the first 12 months. However, launches are an effective leading indicator of future deal closings.”
First Quarter Data Points to M&A Rebound
“The first quarter of 2014 saw a stunning acceleration of M&A activity, reports Mergers & Acquisitions magazine.”
Federal Tax Reform and the Middle Market
How can tax code changes affect the bottom line, and what can owners do to protect themselves?
Active Strategic Acquirers
“Some of these names you are probably quite familiar with; others, perhaps not so much. And many of you probably were expecting to only see high tech or software companies on this list, given the amount of press coverage focused on these industries. Although they are there, the two most active strategic acquirers on the Axial network are operating in less-than-sexy business niches.”
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