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Generational Equity Expects Strong M&A Market in 2018

By Generational Equity

03/09/2018

Our President & CEO here at Generational Equity, Ryan Binkley, foresees another strong year for mergers and acquisitions in the middle market, the segment of businesses our firm serves.

Binkley made his comments during an interview with KRLD Radio’s David Johnson on the CEO Spotlight program, where Johnson interviews senior executives from many of the area’s leading businesses.

Binkley noted that low interest rates, the recent federal tax cuts and an overall strong economy have freed up funds and given buyers confidence to accelerate strategic acquisitions in the middle market.

“We really believe the tax reform will create significant capital for businesses to reinvest,” said Binkley.

“There is always a demand for growth, whether you are a private equity firm or a strategic buyer. Acquisitions are usually the quickest way to grow a business, and quicker is better.”

Binkley told Johnson that his firm’s focus is to help clients understand current market trends. “The market is a big influence on the ultimate sales price,” said Binkley. “We help owners identify and understand the true value of their business and position the business for sale through a proven multi-step process.”

“The goal is to create multi-buyer interest in our clients. Our firm maintains a proprietary database of more than 34,000 registered buyers, and we also develop unique lists of other strategic buyer prospects where our client may be a good fit. This often includes foreign buyers looking for opportunities in the U.S. market.”       

Binkley also said that many business owners have nearly all of their net worth tied up in their companies, and many do not have family members who want to continue running the business. “We specialize in valuing privately held companies and help owners understand the true value of the enterprise in today’s marketplace.” 

“The difference in selling to a local competitor versus doing a national or international marketing effort can have a dramatic impact on the ultimate valuation of the company. The limited auctions that we try to create for every client often add significant premiums to the offers we get for our clients.”

Follow this link to listen to the entire interview:

In addition, if you would like to learn more about what middle market business owners should expect from mergers and acquisitions in 2018, please take the time to explore further insights on this key topic:

Now you are aware of how this M&A environment could enhance the value of your company in 2018, and help secure your exit for an optimal value, you should take the next step with Generational Equity. Whether it’s through attending our complimentary executive conference, or contacting our advisors for a one-on-one meeting, we’ll get you where you want to be.