How long will the current seller’s M&A market last? This is the real dilemma facing every business owner right now, especially if they are in the process of, or considering, selling a company. Interestingly, a recent article in The Denver Post offers an answer:
Most likely 2018 and 2019 will be the last two years.
This is how The Denver Post described the situation:
According to some economists and financial research firms, 2019 and 2020 will reveal a decline in M&A activity in both the number of transactions and the value of the transactions.
Some economists are predicting a downturn or a mild recession as early as 2019 – more likely in 2020–2021. Therefore, 2018 through 2019 are the years businesses will be looking to maximize their deal structures and values in their exit strategies.
This is vital information if you own a privately held company today. Seller’s markets in M&A do not last forever unfortunately. Most are closely tied to several key variables, all of which are very positive right now:
Again, according to The Denver Post:
So what does this mean for lower middle market and small-business owners? According to the 13th Annual M&A Outlook Survey released from the law firm Dykema, respondents were bullish on the prospects of a strong M&A market.
For example, over 70 percent of the respondents predict that the volume of small deals (under $50 million) will increase over the next 12 months. 68 percent of respondents said they would be involved in an acquisition in the next 12 months.
An astonishing 80 percent of respondents expect an increase in M&A activity involving privately owned business in the next 12 months.
As we have discussed in past articles, for business owners that take advantage of the current seller’s market in M&A, and begin the process of creating an exit strategy, this is GREAT news!
But realistically, based on the fact that it takes 9-14 months to close a transaction with an optimal buyer (the kind of transaction every business owner should strive for), you should start today learning as much as you can about how and when to sell a business for maximum value.
A great place to learn as much as you can (without getting an MBA in finance) is to attend a Generational Equity exit planning conference. These are highly educational and designed by entrepreneurs for entrepreneurs.
In fact, most of our conference leaders are ex-business owners who found buyers for their companies, and were able to sell a business for the optimal value, using a professional process like we demonstrate in our conferences.
Since 2018 and 2019 are lining up to be potentially the last two years of the current M&A seller’s market, you should really consider getting your exit planning process started ASAP.
Fortunately, we hold our M&A conferences in locations throughout North America on a regular basis and would love to have you attend one in your area. To find a pending conference near you, use this link:
Do you have any questions at all about this seller’s market and what you need to do to take full advantage of it, or how mergers and acquisitions services can help you unlock hidden potential in your business? Please call us at 972-232-1121 or reach out to us via our website and we will contact you.
I cannot stress heavily enough how vital it is that you don’t delay your exit planning. History is littered with hundreds of deals that were never completed and businesses that are no longer with us, because sellers waited too long to act in 2000 and 2008, right before two major recessions hit.
Reap the benefits of this seller’s market by starting your exit strategy today!
By Carl Doerksen, Director of Corporate Development at Generational Equity.
© 2018 Generational Equity, LLC. All Rights Reserved.
The information we learn from customers helps us personalize and continually improve your experience at gencm.com. Here are the types of information we gather.
Information You Give Us: We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice. Our computer system protects personal information using advanced firewall technology.
Information from Other Sources: For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Capital Markets LLC may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Capital Markets, L.L.C. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Capital Markets LLC at is office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
INFORMATION ON THIS WEB SITE IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSION MAY NOT APPLY TO YOU.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Capital Markets may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Capital Markets does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Capital Markets will be deemed NOT to be confidential. By sending Generational Capital Markets any information or material, you grant Generational Capital Markets an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Capital Markets is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Information Generational Capital Markets publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Capital Markets intends to announce such products, programs or services in your country. Consult a Generational Capital Markets representative for information regarding the products, programs and services which may be available to you.
Generational Capital Markets makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Capital Markets web site, please understand that it is independent from Generational Capital Markets, and that Generational Capital Markets has no control over the content on that web site. In addition, a link to a non-Generational Capital Markets web site does not mean that Generational Capital Markets endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Capital Markets BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Capital Markets.
Honored to win Investment Banking Firm of the Year 3 years running.
Over 50 awards and counting.
Sign up to receive regular email updates, industry-leading insights and details on complimentary M&A executive conferences in your area from our award-winning team
Success, you have been added to our list.