Recently Merrill Corporation released their “America’s Deal Drivers for 2019” report in conjunction with Mergermarket. These two leading M&A organizations have once again provided not only an overview of 2018 activity, but a sensible roadmap for the remainder of 2019.
Based on their analysis of Mergermarket data:
“M&A deal value climbed higher in North America last year, as acquirers took advantage of strong balance sheets and ample access to financing to get deals done. Total M&A value in the region reached US$1.61trillion, representing a 13.5% increase.”
And so far in 2019, the pace of deal making in North America has picked up:
“There have been 504 deals valued at US$257.5 billion so far in 2019, up 15.4% from US$223.2 billion announced in the same period last year, according to Mergermarket data.”
These numbers are truly remarkable when you consider how strong 2018 finished. Normally a new year begins with a brief lull in deal making, as investment banks try to replenish their depleted inventory and acquirers digest the prior year’s acquisitions.
But, as we have seen before, 2019 is starting off much stronger than anyone predicted. In fact, Bloomberg News recently released this data:
“Globally deal makers made a comeback in January, logging $275 billion of mergers and acquisitions to mark the best start to a year in almost two decades. The surge was led by North American deals, with $187 billion of transactions announced during the month — up 40 percent from 2018 — according to data compiled by Bloomberg.
“M&A came back even though the markets felt choppy, and that shows how confident CEOs are,” said Susie Scher, co-head of the global financing group at Goldman Sachs Group Inc.”
Even though the economy continues to chug along nicely, and more importantly CEOs are positive about the future of their companies, there are some concerns highlighted by Merrill:
“Economic conditions in North America appear rosy on the surface, with unemployment and interest rates low and the economy growing at a steady pace. However, 54% of respondents in the Americas singled out the US-China trade war and tariffs as the business risk most likely to climb farther up due diligence checklists this year.
"But ultimately, market participants see upside even despite some concerns. For instance, 47% of our poll respondents said valuations have become more sensible over the last several months — providing much-needed relief to M&A buyers amid a period of frothy prices. With plenty of investment dollars waiting to be put to work, any slowing in activity may actually push some acquirers to redouble their efforts to source deals.”
This last point is vital: If you are the owner of a privately-held business today, you can expect to start receiving even more phone calls from potential buyers than ever before! This can be good or bad depending on the experience you have negotiating and closing the sale of your business.
If you are like most business owners, you will sell one company over your entire career. The professional buyers you want to deal with (because they’ll pay top dollar) have a distinct advantage because they close several deals every year.
How can you take advantage of the current seller’s market and receive maximum value for your company?
By hiring an M&A advisory firm with proven experience and track record of success. Although there are several good investment banks/M&A advisors in North America, none can compare with the success that Generational Equity has experienced over the last past decade plus.
Here are just a few of our honors:
How have we been so successful and achieved these wonderful accolades from our peers? Two reasons:
Both go hand-in-hand. What we do best is to evaluate and sell privately-held companies. And, we do this so well because of the significant experience of our team.
The first step in our process is having business owners and their partners/spouses attend a complimentary Generational exit planning conference. While there you will have the opportunity to meet with a couple of our exit planning team members who will be able to confidentially determine if your business is a good fit for our services.
If you are interested in learning more about our conferences and our services, please follow these links:
By Carl Doerksen, Director of Corporate Development at Generational Equity.
© 2019 Generational Equity, LLC. All Rights Reserved.
it all started with a conference.
start your story today,
speak directly with one of our senior advisors +1-972-232-1121
The information we learn from customers helps us personalize and continually improve your experience. Here are the types of information we gather.
We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice.
By submitting my name electronically and clicking the “submit” button, I understand that I am providing Generational Group, Inc., Generational Equity, LLC, Generational Capital Markets, LLC, DealForce LLC, their affiliates, representatives, contractors, etc. (“Generational Group”) my telephone number, which may include a number that is wireless and/or a number that is on a national, state, or other Do Not Call registry or list. I hereby consent and agree to receive telephone calls including any autodialed and/or pre-recorded telemarketing calls and/or text messages (telemarketing) from or on behalf of Generational Group at the telephone number provided. I further consent and agree that telephone calls may be made using automated technology such as an automatic telephone dialing system, artificial or prerecorded voice, or SMS text messaging. Consent is not a condition of purchase. I further warrant and represent that any telephone number provided is not on any state or national Do Not Call Registry and that by agreeing to these terms and conditions that if any number provided is on any such registry, I hereby consent and agree to receive telemarking calls and/or communications including any phone calls, text messages, URLs, links, emails, etc. to the telephone number(s) and/or any e-mail addresses provided. I understand that by entering my name in the electronic form provided, that I am signing my name as equally as if it was my handwritten signature and that it is my intent to provide an “electronic signature” as that term is defined in state and federal law, as well as industry practices for e-commerce.
For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Group may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Group. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Group at its office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Group may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Group does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Group will be deemed NOT to be confidential. By sending Generational Group any information or material, you grant Generational Group an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Group is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Our computer system protects personal information using advanced firewall technology.
Information Generational Group publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Group intends to announce such products, programs or services in your country. Consult a Generational Group representative for information regarding the products, programs and services which may be available to you.
Generational Group makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Group web site, please understand that it is independent from Generational Group, and that Generational Group has no control over the content on that web site. In addition, a link to a non-Generational Group web site does not mean that Generational Group endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, Trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Group BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Group.
Success, you have been added to our list.