Generational Group Reports: Powell Nomination for Fed Chair Makes This a Good Time to Sell Your Business

By Generational Group

12/05/2017

One of the most important aspects to receiving maximum value when selling a business is the timing of the transaction. The recent announcement that Federal Reserve Governor Jerome Powell will be nominated as the next Chairman of the Federal Reserve makes this a good time to consider the sale of a business.

In the past Powell has embraced the current Fed policy of gradually raising short-term interest rates.

"The ability to borrow and the cost of borrowing are key factors for acquirers to structure deals and, in turn, sellers to obtain maximum value for their business," said Terry Johnson, Chief Revenue and Strategy Officer at Generational Group.

"Low interest rates reduce the overall cost of capital and make it easier to finance transactions while still enabling buyers to generate their required ROI."

"The question isn't whether interest rates will go up but rather when they will increase," Johnson said. "Historically low rates are creating a strong demand for growth opportunities through acquisitions in the middle market we serve."

According to the National Center for the Middle Market, 25 percent of companies surveyed planned to make an acquisition within the next 12 months, up from 22 percent in 2016.

"The continued strong stock market also makes it easier for public companies to finance acquisitions," notes Johnson. "We are also finding continued interest by foreign investors, particularly in Asia, for the U.S. firms we represent."

"While there is a level of uncertainty regarding taxes, interest rates and regulatory issues, there has never been a better time for business owners to fully explore the option of selling," Johnson said. "Because of the time involved in properly conducting a comprehensive, professional M&A process, indecision at this time could prove very costly."  

About Generational Group

Generational GroupDealForce, and Generational Capital Markets, member FINRA/SIPC, are part of the Generational Group, which is headquartered in Dallas and is one of the leading M&A advisory firms in North America.

With over 200 professionals located throughout North America, the companies help business owners release the wealth of their business by providing merger, acquisition and strategic growth advisory services. Their four-step approach features exit planning education, business valuation, value enhancement strategies, and M&A transactional services.

The M&A Advisor named the company the 2016 and 2017 Investment Banking Firm of the Year. For more, visit https://www.genequityco.com/ or the Generational Group press room.


About Generational

Generational Group, headquartered in Dallas, TX, is a leading, award winning full-service M&A advisory firm. Generational has over 300 professionals across 16 offices in North America. The firm empowers business owners to unlock the full value of their companies through a comprehensive suite of services—including strategic growth consulting, exit planning education, business valuation, value enhancement strategies, M&A advisory, digital solutions, and wealth management.

Celebrating its 20th year, Generational has successfully closed over 1,700 transactions and has ranked #1 or #2 in all LSEG league tables for deals valued between $25 million and $500 million in 2022, 2023, and 2024.

The firm was named 2024 USA Investment Banking Firm of the Year by the Global M&A Network and recognized as Investment Banking Firm of the Year by The M&A Advisor in both 2024 and 2022.