Economic & M&A Boom Going Strong

By Generational Equity


Turns out that Jamie Dimon, CEO of JP Morgan Chase (along with lots of other economic prognosticators), is very bullish on the future of the U.S. economy for the next several years:

Here are a few of the key points he makes in his latest shareholder letter:

Dimon sees strong growth for the world’s biggest economy in the near term, thanks to the U.S. government’s response to the coronavirus pandemic that has left many consumers flush with savings.

While Dimon called stock market valuations “quite high,” he said a multiyear boom may justify current levels because markets are pricing in economic growth and excess savings that make their way into equities.

“I have little doubt that with excess savings, new stimulus savings, huge deficit spending, more QE, a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic, the U.S. economy will likely boom,” Dimon said. “This boom could easily run into 2023 because all the spending could extend well into 2023.”

As you are probably aware, as the economy grows, generally speaking, so does the demand for acquisitions. If Dimon is correct (and he usually is), then we may see the continuation of the current M&A seller’s market that started after the last recession continue well into 2023. There is simply too much pent-up demand for consolidation and growth, a trend we saw really begin at the mid-point of 2020 (despite the impact of the pandemic).

So where does this news put you?

Are you prepared to take advantage of what is shaping up to be the continuation of the strongest seller’s market in years? Do you need guidance on how to prepare your business (and yourself) to go to the next level of performance? Have you considered the potential impact of federal tax changes on your post-sale financial position? Do you have tactical and strategic plans in place to build your business for future growth, even if you are not contemplating an immediate exit?

These are all key questions for you and your family to consider. A great place to get help answering them is at a Generational Equity Growth and Exit Conference. These are designed by entrepreneurs for entrepreneurs. Our team speaks your language and understands your challenges because they have been (and in many cases are) business owners themselves.

If you would like some ideas on how you too can profit from the economic boom predicted by Jamie Dimon and others, you can learn more by using the following links:

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

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