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Despite Current Conditions Buyers of Businesses Plan on Being Active

By Generational Equity

Business Buyers Remain Active

Based on a recent survey of 2,900 business executives throughout the world by Ernst & Young - taken AFTER the impact of COVID-19 was felt on the economy - 56% of executives surveyed are actively planning to pursue acquisitions in the next 12 months, an actual increase from October's figure of 52%!

For many of you, this is stunning news. But it makes sense because professional buyers (the kind that you want to sell your business to) know that once the economy begins to return to normal, there will be an anticipated increase in acquisition activity.

In fact, according to Bill Casey, an executive at Ernst & Young who worked on the consulting giant's survey, "I think there will be a tremendous uptick in the level of deal activity."

But you probably are asking: What kind of businesses will they be after? Most likely huge, mega-deals?

Again, according to the survey highlighted in Pitchbook: “For now, many dealmakers are forgoing transformational mega-deals in favor of smaller acquisitions.”

And this makes sense. History shows that it is far more effective, and the ROI (return on investment) better, when buyers acquire 10 smaller companies and merge them over time rather than make one huge transformative deal that often yields poorer results.

Again, according to Mr. Casey:

"Ultimately, companies are going to have to reimagine their business. The world will be changed fundamentally as a result of this, and that will lead to more transactions.”

Although the survey found that 73% of respondents expect the COVID-19 outbreak to severely undermine the economy short-term, 38% expect a quick, V-shaped recovery, with economic activity returning to normal in 2020.

What Does This Mean For You and Your Business?

This is an important question. Right now we realize that there is tremendous uncertainty in the world and we are facing several weeks of continued business disruption. But most experts agree that eventually the U.S. economy will return to some level of normalcy. Certainly, the $2 trillion dollar CARES Act passed recently and the Paycheck Protection Program which is part of it will help sustain many businesses for the foreseeable future.

So what you need to do is begin preparing your business today for the eventual return to business as usual by beginning your M&A journey.  

What is the best way to do that during these turbulent times?

A very good first step is to either attend one of our exit planning meetings that we hold throughout the U.S. or register to attend one of our informative M&A webinars. At either venue, you will have a chance to meet face-to-face or virtually with a Generational Equity M&A Advisor

Our M&A professionals have extensive experience in guiding business owners through times like this. During that meeting, you will mutually determine what the next steps may be for your particular situation in relation to our services.

Keep this in mind: It takes 90-120 days to complete the initial evaluation phase of your business, a critical first step in a professional M&A process. So starting out soon means that you will most likely be entering the market at the point when recovery may be in full swing, and buyers will be most active.

We have never met a business owner that regretted starting the exit planning process too soon!

As you can see from the survey discussed above (and history shows us this too), privately held companies are acquired during all market cycles. The folks that reap the most benefit are the business owners that have built buyer-ready businesses that, coming out of any cycle, are prepared to meet with buyers and generate optimal deals for their owners.

So, if you are interested in being part of this eventual increase in buyer activity, reach out to us at 972-232-1121 or visit our website, provide us with your contact information, and we will be in touch.

If you would like to learn more about Generational Equity and the services we provide please use the following links:

Your Generational Team

© 2021 Generational Equity, LLC All Rights Reserved

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We had the pleasure of working with Mr. Ahmad Behjati Managing Director, M&A, for Generational Equity during our acquisition of Papa's Dodge in late 2021. Generational Equity and Mr. Behjati represented and marketed Papa’s Dodge. As our primary contact, Mr. Behjati was professional in every facet of this acquisition process, conveying valuable advice most times and assisting us in every step of the process.
Rick Greene of Dobbs Equity Partners LLC
Greetings Mike. Thank you for the captivating and compelling presentation you made at the Phoenix presentation last week. Over many years in business yours was the most informative and well-presented presentation, on any subject, that I have ever attended! Your energy and enthusiasm combined with your concise and captivating support of your positions with easily understood examples and data was compelling.
Pete L.
We thank you Eric and Generational Equity making our dream come true.
Larry Moore, Owner, A Company Portable Restrooms
Generational Equity’s assistance was invaluable in compiling and marketing our business.
Bil MacLeslie, CEO, ipHouse
I would like to thank you and your firm, Generational Equity, for being our valued advisors in our journey.
Bil MacLeslie, CEO, ipHouse
I am pleased that I was able to work with Andrew Byrd throughout this experience. From the first meeting we had in Minneapolis I felt that I was in good hands. His knowledge and expertise is second to none. He guided the process consistently throughout. I feel lucky that I was pared with Andrew and could not be happier that I chose Generational Equity to handle this major life event. Thank you Andrew and GenEq for everything!
Eric Erlandson, Owner, Action Fastenings, Inc.
We were happy to see the interest in our company and what we cherished has not just a valuable company but an important company to the communities we served in.
Larry Moore, Owner, A Company Portable Restrooms
After attending a conference with GE, I decided that the value they bring would be worth the expense and as soon as I started working with them, I realized that was the right decision. When we started to get LOIs, Fred Zweifel took the lead on the communication and supported negotiations throughout the process, which got tricky as we moved forward. I learned that it can be common for companies to make a great offer then work to erode that price with their discoveries, but Fred and the GE team kept that from happening.
Caroline Connelly, CEO, OptoTest
Through the sale process, Generational brought in several interested buyers and we closed in about 6 months. I am so glad I accepted that invitation to the conference and could not be happier with the whole process. The team at Generational coupled with their knowledge and guidance was so valuable that in the end, I know I could never have done this on my own!
JoAnn Ellis, Owner of Fondren 5 Star Kennels
I couldn’t have asked for a better team than Michael and Deborah. We couldn’t have done it without them.
Robert Evans, President and CEO of Mealtracker Dietary Software
The process was much more involved than I expected and your help, experience and advice was a big factor in making the negotiations go as smoothly as possible.
Terry D. Wickman, President, Keytroller
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
I quickly recognized that Don was working for Sharpe Mixers above all else, and held our interests above others.
Jay Dinnison, Owner of Sharpe Mixers
We knew it would be a difficult task to have someone really understand our business and our market, prior to researching a possible buyer, so it was imperative that we found someone of your caliber, with definite proven experience in this area.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
T.D., thank you so much! You are a great leader! I love how you are using your gifts and talents to better others. You are clearly a GREAT COACH! This 3 day session undoubtedly changed the future of our business, and very well may have been the sole catalyst to save my company, my health and my marriage! A genuine “thank you” from the bottom of my heart.
Bryan D. Horn, Owner, Over Under Clothing
I wanted to take this opportunity to thank you for all that you have done for us. Not only did you take care of all the aspects of the sale but took extra care to make sure we knew what it looked like every step of the way. I will definitely recommend your company to anyone that is in a position to or looking to exit their business.
Shane and Johanna Kline, Owners of Vision Upfitters
We were represented by Michael Goss with Generational. The due diligence was grueling and exhausting, but Michael propped us up and kept us motivated throughout the process. Debi and I continued to ask each other how we could possibly make it through this process without the assistance of Michael. Michael's professionalism and knowledge is absolutely amazing, and we are so blessed to have had him by our side as we made our future dreams come true.
Bob and Debi Lee, Owners of BL Technology, Inc and BL Tl Services, LLC
We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Thanks to you, the entire GE team and especially Michael Goss for driving a great valuation, coaching me and driving the process across the finish line. Please let me know if there is anything I can do to support GE going forward.
Tom Currier, Former President & CEO, Rackmount Solutions
Generational Equity educated and informed us – so that we could be on the upside of a good decision (to sell).
Bil MacLeslie, CEO, ipHouse
Thank you again for all your guidance and support. Any company will achieve what they intend, if they have you on their team!
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
I wanted to write you a quick letter to express our appreciation and our delight on the outcome of helping us through the process of our recent sale. We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Terry D. Wickman, President, Keytroller
The most important contribution I think Ahmad made was with his personality and work ethic. He is sincere, efficient, and very hard working. He was available to me at all times, whether it was for specific detail of the negotiation or just to talk through the bigger picture. He listened, advised, and recommended, but never forced his idea or opinions. In the time we worked together, he became a valued colleague and also a friend.
Salvo Stoch, Founder and CEO of Sleeping Partners
Michael worked tirelessly, He followed every lead meticulously and urgently to make sure nothing was missed.
Robert Evans, President and CEO of Mealtracker Dietary Software
I must say that I have never worked with a more driven, competent and focused individual as Don Ho.
Jay Dinnison, Owner of Sharpe Mixers
The help you provided us during each step of this process made us feel very comfortable and confident we were selecting the right approach to transition our Company.
Andy Graham, Vice President, Modern Heating & Plumbing
The professionals at Generational Equity then helped develop a roadmap for enhancing the value of the firm and an evaluation report. This was completed by June 14, 2021. We then developed the Confidential Information Memorandum and put Taylor Studios, Inc. on the market by July.
Generational Equity’s professional staff helped me every step of the way. Their network and professionals are the only reason I sold my company this quickly. For me this is a once in a lifetime sale and I was unfamiliar with the process. I was able to lean on them with questions and concerns.
Betty L. Brennan, President, Taylor Studios
I decided to attend the conference and hopefully receive some guidance on how to structure an exit plan of my business. Upon arriving at the conference, I was so impressed with the presentation given by Generational Equity that I set a future appointment that week to discuss the possibility of selling my business with their Senior Managing Director David Robinson.
JoAnn Ellis, Owner of Fondren 5 Star Kennels
I need to say an immense thank you to Don Ho for his stellar work ethic, attention to detail, and tireless effort. Also thank you to the whole crew at GE! Without you, Don could not do such a phenomenal job. We were shooting for closing and funding before the end of 2020, due to the uncertainty of the political landscape and taxes. I am happy to report we closed last week and will be funding tomorrow.
Dr. Caty J. Catron PhD, RN, VA-BC – Owner, Vic The Picc, LLC