Up this week in the M&A Digest is a series about fixable things that can cause a deal to fall apart and much data about the seller’s market we’re in.
“Now, many entrepreneurs do not recognize this for the issue that it is. Many are justifiably proud of the important role that they individually play in the ongoing success of their business. They look at their contributions and say, “Look at what I have accomplished and achieved and see how involved I am in the dailyof my business!”
From a personal satisfaction standpoint, that is all well and good. However, buyers view this quite differently.”
“What does “customer concentration” mean? To different buyers it means a variety of things. In general, if a significant percentage of a business’s revenue is generated by a limited number of clients, buyers may have some concerns.”
We examine a tricky issue: How to give a buyer confidence in the quality of your future revenue streams.
Many family business owners are hesitant to consider selling the company to an outside buyer, but it can be the best option for the firm and the family, especially in a seller’s market, as one company discovered.
“Global writes The Wall Street Journal.and are on pace this year to hit the highest level on record, thanks to a buying spree from companies on the hunt for growth,”
Generational Equity concurs. In fact, as of mid-October, our deal volume was up 60% over the same timeframe last year and our deal value is more than 50% higher as well. This is substantial growth driven by a number of factors, not the least of which is the fact that we are in one of the strongest seller’s markets in ages.
As of September 21, according to Dealogic, the total value of announced transactions worldwide at $3.1 trillion is on a pace to eclipse the former high water mark of $4.2 trillion set in 2007. But what does this mean for business owners with annual revenue less than $100 million? What about less than $25 million?
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