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You are here: Home / M&A / M&A Digest – Nov. 13, 2015

M&A Digest – Nov. 13, 2015

November 13, 2015 By Editor

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.

selling a business challenges

M&A Transactional Challenges – Owner Dependence

“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 daily operations of my business!”

From a personal satisfaction standpoint, that is all well and good. However, buyers view this quite differently.”

M&A Transactional Challenges  – Customer Concentration

“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.”

M&A Transactional Challenges – Non-Recurring Revenue

We examine a tricky issue: How to give a buyer confidence in the quality of your future revenue streams.

Is It A Seller’s Market for Family-Owned Businesses?

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.

Mergers and Acquisitions Striding Toward Historical Year

“Global mergers and acquisitions are on pace this year to hit the highest level on record, thanks to a buying spree from companies on the hunt for growth,”writes The Wall Street Journal.

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.

Dealogic Data Points to Record Year for Mergers and Acquisitions

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?

© 2015 Generational Equity, LLC. All Rights Reserved.

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Are you thinking of exiting your business in the next 5 years? Don’t leave money on the table and learn the 5 Common Mistakes To Avoid When Selling A Business in this free whitepaper from M&A experts Generational Equity.5 mistakes to avoid when selling a company

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Filed Under: M&A, M&A Weekly Digest Tagged With: customer concentration, family business, m&a activity, revenue, seller's market

The Private Business Owner – A Generational Equity Blog

The Private Business Owner is an online publication sponsored by Generational Equity. PBO aims to provide useful tips and information that will improve both the lives and businesses of entrepreneurs, as well as provide valuable insight into the company exit process through bi-weekly M&A Digests.
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