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Add On Acquisition Focus

By Generational Equity

Add On Acquisition Focus

As we have discussed in recent Insight posts, we are seeing a dramatic increase in M&A activity overall, but especially with private equity firms expanding their platform companies. In fact, July through September were record months for Generational and its deal teams, as the number of buyers submitting NDAs to us (non-disclosure agreements) is at an all-time high.

The title of an email I received a few weeks ago sums up the current situation nicely:

LLR Partners is actively seeking add-on acquisitions of all sizes for select portfolio companies.

And this is just one email that my colleagues and I receive from equity firms on nearly a daily basis. This firm is not unique in that right now PE firms that focus on the middle to lower-middle market have become quite acquisitive.

Why?

Because these savvy investors always have a longer-term horizon when planning their acquisitions. They know that this economic crisis, as all others in the past, will eventually be in our rear-view mirror, and they are preparing to reap the rewards when recovery is in full swing within a few months.

The good news for you, if you own a privately held company, is that you too can benefit from this activity right now. Our record July and August closing rate continued into September, and we anticipate that the fourth quarter will see the same strong activity.

The key question that only you can answer is this: Is your business buyer ready?

Secondly, are you ready?

No matter your answer to those two questions, it is vital that you have information now more than ever before. A great place to start your exit planning education is by attending a Generational Equity growth and exit planning executive conference.

Not only will you gain a significant amount of information about how to exit optimally, you will also be able to spend time with our exit planning experts at the meeting who will be able to offer you valuable guidance as you examine your options.

To learn more about how you too can participate in this new M&A revival, please use the following links:

Carl Doerksen is the Director of Corporate Development at Generational Equity.

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