M&A Market Trending for Record Year in 2018

By Generational Equity

09/24/2018

Recently, Merrill Data Corporation, in conjunction with Mergermarket, released dynamic and compelling data for M&A transaction value through the first half of 2018. What caught our attention was that the deal value, both globally and in North America, is up substantially so far this year when compared to last. Here are the charts so you can visualize this data:

Global M&A Trend

Global M&A Market Trends between 2013 and 2018.

U.S. and Canada M&A Trend

M&A Market Trends in the United States and Calendar between 2013 and 2018.

The data shows that for the first half of 2018, deal value in the U.S. and Canada is up by 27% over the same period in 2017, and up by 28% globally. Considering that the latter half of most years sees more deals close than the first, 2018 has a good chance of equaling or even surpassing 2015, which was the best year for deal value in a long time.

The M&A Seller’s Market Endures

Clearly, the macroeconomic forces that have been propelling deal demand for the past several years are still fueling it. Right now, as never before, we are seeing more buyer interest in our clients. Business buyers are currently telling us that they simply cannot see enough good deals given the capital that they have available to them.

This is fantastic news if you own a company today. But it’s only fantastic news if you take advantage of the strong market we are in right now by hiring an M&A advisor. An experienced M&A professional will help you to determine your company’s business enterprise value and walk you through your exit planning options.

It Pays to Prepare When Exiting Your Company

Keep in mind that there are two types of business owners:

  1. Those that PLAN to sell
  2. Those that HAVE to sell

Basic logic tells us that it is far better to be in the first group rather than the latter. Sadly, far too many of the baby boomer business owners facing retirement will wait until external circumstances force them to sell.

So don’t delay. Act now by reaching out to Generational Equity about attending one of our complimentary, highly educational, exit planning conferences that we hold throughout North America. Business owners that attend tell us that it has been the best investment of their time in years:

If you are interested in learning how you can best take advantage of another record M&A year, please call us at 972-232-1121, or visit our website, provide your contact info, and we will be in touch.

By Carl Doerksen, Director of Corporate Development at Generational Equity.

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