We open this M&A Digest pondering the question: What do I do once I sell my company? Opportunities are endless, but that can be overwhelming. To help private business owners get started, we offer a few pointers. Then, we cover economic predictions for the coming months, M&A activity data, and the baby boomer business owner situation. As usual, click on the headlines to read the full pieces.
The answer is not simple, but it is an important thing to ponder during theplanning process if you are the owner of a private business. Here a few pointers to get you started.
“[F]ar too often we are hearing from business owners who tell us that they are delaying their exit plans right now because business is so good. This is unfortunate for a number of reasons. Since we are in the midst of one of the strongest seller’s markets in ages AND businesses are performing better overall, now is a perfect time to close a deal with an optimal buyer.“
Some business owners may look at the same data and scoff, saying, ‘This only reflects billion-dollar deals, not the real world where my business resides.’ However, the reality is … lower middle-market transactions (those valued below $100 million) make up the lion’s share of actual deal count. ….
Two questions arise whenever we talk about the current seller’s market:
1. Why is this a good time to sell?
2. How long will this market last?
Let’s address these.”
“Even though the sources and numbers vary, the gist of all of these is essentially the same: During the next decade-plus, a significant number of baby boomer business owners will be retiring. The 900-pound gorilla in the room is what will they be doing with all the businesses that they own?”
Deal closings had its best two contiguous months in June and July, according to data from FactSet Mergerstat. As a business owner, are you ready to take advantage of the M&A market?
Generational Equity is entering the M&A market in the United Kingdom. Here’s the motivation behind the move and how it could help entrepreneurs there.
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