The M&A Weekly Digest brings you a discussion about the current private equity overhang, how analysts expect M&A activity to fare in the rest of 2012, and a discussion about exit planning for private business owners. [Read more…]
M&A Weekly Digest – December 16th, 2011
This week’s M&A Weekly Digest discusses how economic uncertainty affects business owners; a increase in the amount of cash that corporate strategics are sitting on; getting optimal deals; and the types of M&A services available and what to expect from each. [Read more…]
M&A Weekly Digest – October 14th, 2011
For today’s edition of the M&A Weekly Digest, which features news and tips in the M&A world, we offer articles about the importance of succession planning; the amount of dry powder private equity firms must invest shortly; how to find buyers when selling a business; why private equity firms invest in middle-market companies and how they assist in growth; and an examination of a recent acquisition that is a classic example of a synergistic add-on. [Read more…]
Private Equity Banks More Capital
As we have discussed in prior articles, equity funds are currently sitting on a sizable amount of dry powder (dry powder refers to capital raised that is unspent and available for investing purposes). In fact, a few months ago it was reported that equity firms had nearly $500 billion stocked away looking for deals to invest in.
So I find it really interesting that despite already sitting on a significant amount of dry powder, equity firms continue to have little trouble raising additional funds. According to Dow Jones, 201 U.S.-based private equity funds collectively raised $64.7 billion in the first half of the year, a 35% increase in capital committed over the $47.8 billion raised by 225 funds during the first half of 2010. [Read more…]
Mergers And Acquisitions Activity Up By 30%
If you want to sell your business, your timing couldn’t be any better. According to the ACG (Association for Corporate Growth), M&A activity is up by 30% through May of this year. The ACG’s 14,000 members include professionals from private equity firms, corporations and lenders that invest in middle-market companies, as well as law, accounting, investment banking, and other firms that provide advisory services. It is an international organization dedicated to fostering sound corporate growth primarily via mergers and acquisitions.
Because their membership is largely skewed towards dealmakers focusing on the U.S. middle market, their information is a really good barometer of M&A activity. According to the ACG, although M&A activity has not reached pre-recession levels yet, valuations have largely recovered. Given the significant amount of capital chasing deals right now, this is not surprising. In fact, according to Pricewaterhouse Coopers, we are at the beginning stages of a seller’s market. [Read more…]