BSCAI Releases 2018 Q4 M&A Watch
The M&A Watch is a quarterly publication offering analysis of the marketplace and climate for middle market mergers, acquisitions and strategic transactions. The goal of this publication is to arm business owners and other parties with insight to help prepare for such transactions in order to maximize transaction outcomes.
2018 was another solid year for M&A. While broader market M&A deal volume was up as much as 50% according to some sources, the lower end of the middle market representing transactions of less than $250M in total enterprise value (TEV) was more consistent with 2017.
Here are top takeaways from 2018:
- Encouraging macroeconomic indicators and generally positive business sentiment fueled M&A activity.
- Low interest rates kept borrowing affordable for M&A deals.
- 10,000 Baby Boomers retiring a day are driving abundant small business acquisition opportunities.
- Deal friendly administration, policy clarity and tax reform helped M&A.
- Limited organic growth options encouraged acquisitive growth initiatives by strategic operators.
- Valuation multiples peaked and softening is starting to be felt.
- With higher multiples, due diligence was rigorous.
- More companies Stress-Testing, Optimizing and Exit Planning to prepare for an exit in the next few years.
- Private Equity’s capital abundance and limited deal ﬂow motivated them to do smaller deals.
- “Acquihires” (buying companies to access talent) more common due to extraordinarily low unemployment rates.
This year-end 2018 Pursant Deal Insider provides data and insight into what business owners need to know to be a successful buyer and/or seller in 2019.
BSCAI Members, download the full report here.
Pursant helps business owners grow the value of their companies and maximize that value in a liquidity event, partial sale or complete exit.
Our Investment Banking, Strategic Transaction Support and Business Value Enhancement business units use a deep immersion process, our expansive networks and experience as owner/operators and dealmakers to optimize businesses, manage strategic transactions and orchestrate liquidity events — vital, integrative initiatives for which our clients may not have the time, manpower or expertise.
To learn more about how Pursant can help you, contact Mark Herbick at firstname.lastname@example.org, call 847-229-7000 or visit www.Pursant.com.
Information provided by Pursant, LLC, GF Data®, Pepperdine Private Capital Markets Project® and Cap IQ® in this report may not be used in work product or republished in any format without written permission of Pursant, LLC, GF Data®, Pepperdine Private Capital Markets Project® or Cap IQ®.