There are good indications that the favorable tailwind continues for M&A activity in the coming year. Key indicators paint a clear picture: buyers are actively seeking opportunities that advance their strategies. Owners are aging, and looking for transition options.
Citizens Bank Commercial’s annual study on the appetite for M&A deals found that “he number of mid-sized U.S. companies already engaged in or open to buying and selling has risen sharply since last year, setting the stage for a very active 2017 merger market.”  Among the findings:
Allstate/USA Today have developed a Small Business Barometer based on input from thousands of owners across all markets. It found resilience and optimism with 90% believe the benefits of ownership outweighs the challenges. Also, 70% feel their businesses have grown the same or more as last year. Often these businesses are best transitioned using M&A sales processes.
The most recent Market Pulse survey, a survey we participate in and which is conducted by M&A Source and IBBA with Pepperdine University, reveals that deal multiples remain very as strong as 2015. Also, there are more well-funded buyers in the market now than top quality sellers, so the seller market continues.
The M&A process that we use involves actively seeking strategic, synergistic and financial buyers. We welcome the opportunity for an exploratory conversation, whether a sale is in the short or longer term. It is nice to learn about your business and to start talking about possibilities.
Footnote  Middle Market M&A Outlook 2016, Citizen Bank Commercial
"The entire process went smoothly and professionally. The BTS team kept me fully informed at every step. They worked hard and were effective in bringing the deal home."
"Skip and I continue to be grateful for all you have done to make the sale of Pure Flow come to fruition."
"BTS’s level of expertise in the process and close attention to detail enabled us to successfully navigate the deal."
"These types of transactions are often long and complicated and I doubt it could have been successfully completed without your close ongoing involvement."
"The outside objective point of view that you have brought us has been invaluable as we prepare for the rapid growth."
"John then found the right buyer and coordinated a seamless transition—he doesn’t miss a single detail."
"John immediately identified our strengths and experiences and discussed a business that ultimately was more in line with our goals."
"The BTS team came in, evaluated everything in a professional and thankfully non-threatening manner."
Private Equity Trends
More and more PE firms are searching for smaller transactions. The reason for this is simply competition
Using a Specialist in M&A
While using an industry specialist to market a company may save a few days in preparing the offering materials, there is the danger of a cookie-cutter approach.
Legal Breakfast Series: How I Sold My Company - A Case Study
Attorney Peter Burger and John Howe of Business Transition Strategies will be the featured speakers during the latest Orr & Reno Legal Breakfast Series on Wednesday, June 14 at the Orr & Reno offices
What's Next Really Matters
The book explores the exits of owners ranging from the good to the bad, from the joyful to the ugly...Often overlooked is the reality that after the closing, everything will be different.
Staying Current to Help Clients
Twice a year we attend a deal expo with private equity groups and strategic buyers...Connections made at this event broaden our list of people who will take our calls, answer our questions, help when
Overcoming Fear of Public Speaking
Communication skills are critical in business, and overcoming fear of speaking is fundamental...it can be the difference between getting a sale or missing out.
P+E+S=EF, a winning formula for Michael Coles
The experience factor is the way a customer feels about a business, and in part determines whether the customer returns or goes elsewhere.
Tailwinds Continue for M&A Deals in 2017
There are good indications that the favorable tailwind continues for M&A activity in the coming year. Key indicators paint a clear picture: buyers are actively seeking opportunities that advance thei
Why Consider a Buy Side Transaction?
There is also a truism when it comes to growth, “It is much faster to grow through acquisition than organically one customer at a time”.
Is 2017 the time to act?
Wrapping up 2016, and considering key initiatives of the year, we see trends that we believe will continue for New England M&A in the year ahead. Key things we are seeing:
Precision Machining Company
Initially, liquidation was a serious consideration. It would offer a quick exit but would hurt loyal employees and disrupt the customers who had come to rely on its quality production.
Green Product Company
Our client owners could dig in for the long haul…However, this would take five years or more. Owners simply lacked the horsepower to do it.
Water Purification Company and Young Buyers
Owners decided they wanted to retire. They also wanted to be fair to the staff who had been loyal to them. Could the company be sold, the staff retained and the facility remain in use?
Magnetics Company with High Profile Customers
(T)he manufacturer would need to focus on growing EBITDA to capture interest from major strategic buyers and achieve a higher multiple of earnings.