As 2017 draws near to its close, we now enter the time of year when M&A analysts, dealmakers, and pundits begin to look at the approaching 12 months and provide their expectations for 2018. Their analysis should provide a bearing on when you should plan to exit your business.
Here’s the consensus: despite a lot of unknowns about what may happen in 2018, dealmakers and analysts are generally very bullish on next year, expecting the current seller’s market to continue gaining momentum.
The private equity industry is a good indicator of what trends will be impacting M&A activity next year. PE firms exist to do only one thing: invest in companies in order to help them grow for their limited partners. So demand from this group is a bell-ringer for what may occur in the larger M&A arena as well.
According to a recent article by a contributing editor in Mergers & Acquisitions magazine:
The last part of the prior paragraph is key. The amount of available capital committed to equity firms right now is at a record high. As we have been pointing out all year, this money will need to be eventually invested or it has to be returned to the PE firms limited partners. As the latter is not a welcome event (not a nice reputation for a PE firm to develop in the investor community), odds are good that all this money will be chasing far too few deals in the coming year, sustaining the seller’s environment we are now in.
Again, from Mergers & Acquisitions magazine:
Although our final numbers for 2017 are not in yet, in general our dealmakers agree with Ms. Perkins; there is really nothing on the horizon that should slow down buyer activity. This is what we are hearing all the time from professional buyers we regularly talk to, and based on the fact that in 2017 we will be closing a record number of deals, we expect demand to remain strong for our clients in the market going forward.
The key question every business owner should be asking themselves right now is this: What am I waiting for before I initiate my exit plans? Since it takes 9-14 months to generally close a deal with an optimal buyer, waiting too long could prove problematic. That may take you into 2019, causing you to miss what may be one of the strongest M&A years in memory.
Now we understand that exit timing is impacted not only by external market trends, it is also affected by your personal journey in life. As much as we would like to make the decision to exit your company a “scientific” exercise, we also recognize that the idea can be extremely emotional for many business owners, especially if the business has been in the family for multiple generations. The clan’s ongoing legacy and association with the company and community might be at stake.
However, setting all that aside, it really is important in ensuring your personal financial future (and that of your family’s) that you begin to plan for an exit event sooner rather than later. A great place to start this process is by attending a Generational Equity M&A conference. Investing a few hours of your time will greatly benefit you later, as the information you gather will allow you to outline your exit planning goals and time frame.
If you would like to learn more about Generational Equity and our educational conferences, please use the following links:
Remember: the timing of your exit strategy plays a significant role in determining the value of your business in the eyes of buyers. If you are considering the next chapter, make sure you act now to benefit from this seller’s market while it lasts.
By Carl Doerksen, Director of Corporate Development at Generational Equity.
© 2017 Generational Equity, LLC. All Rights Reserved.
Generational Equity educated and informed us – so that we could be on the upside of a good decision (to sell).Bil MacLeslie, CEO, ipHouse
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 thank you Eric and Generational Equity making our dream come true.Larry Moore, Owner, A Company Portable Restrooms
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
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
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
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
I would like to thank you and your firm, Generational Equity, for being our valued advisors in our journey.Bil MacLeslie, CEO, ipHouse
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.
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 again Phil and feel free to have a future client call me if they would like a referral. You are a true professional!Andy Graham, Vice President, Modern Heating & Plumbing
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.
We are extremely pleased with the way Generational Equity handled the sale of our company. Your associates, Tom and Chris, did an outstanding job of getting us (me) through the process.Michael J Polarek, President, Paragon Packaging
Tom Staszak is one of the most professional people I have dealt with in my last forty years of business. You’ve got a great group of people and you have built a truly professional organization.Michael J Polarek, President, Paragon Packaging
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
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.Ralph Noblin, President of Noblin & Associates
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
Generational Equity’s assistance was invaluable in compiling and marketing our business.Bil MacLeslie, CEO, ipHouse
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
Bruce and I wanted to take this opportunity to thank Generational Equity for assigning Musa Jagne to our transaction. In Bruce’s words, “Musa did one hell of a job for us!”Karen S. Williams, CFO, BW Manufacturing
We will highly recommend Generational Equity and Musa Jagne to any business owner about to embark on the same process.Karen S. Williams, CFO, BW Manufacturing
The information we learn from customers helps us personalize and continually improve your experience at genequityco.com. Here are the types of information we gather.
Information You Give Us: 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. Our computer system protects personal information using advanced firewall technology.
Information from Other Sources: 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 Equity LLC 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 Equity, L.L.C. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Equity LLC at is 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 IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSION MAY NOT APPLY TO YOU.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Equity may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Equity 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 Equity will be deemed NOT to be confidential. By sending Generational Equity any information or material, you grant Generational Equity an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Equity is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Information Generational Equity 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 Equity intends to announce such products, programs or services in your country. Consult a Generational Equity representative for information regarding the products, programs and services which may be available to you.
Generational Equity makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Equity web site, please understand that it is independent from Generational Equity, and that Generational Equity has no control over the content on that web site. In addition, a link to a non-Generational Equity web site does not mean that Generational Equity 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 Equity 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 Equity.
Honored to win Investment Banking Firm of the Year 2 years running.
Over 50 awards and counting.
Sign up to receive regular email updates, industry-leading insights and details on complimentary M&A executive conferences in your area from our award-winning team
Success, you have been added to our list.