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Insights > From the Desk of Ryan Binkley, President & CEO of Generational Equity - January 2018

From the Desk of Ryan Binkley, President & CEO of Generational Equity - January 2018

By Generational Group

Ryan Binkley January 18

Hello and welcome to our January 2018 eNewsletter! Happy New Year and I hope that both you and your business are thriving so far in 2018.

Because of the diligence of our deal teams, and significant buyer activity in 2017, last year turned out to be a record year of deal closings for Generational Equity. We anticipate 2018 to be a continuation of the strong seller’s market we have experienced over the past several years for a variety of reasons:

  • Recent tax reform legislation, which will generate significant cash for corporations to use for acquisitions
  • Record amounts of dry powder with equity firms that needs to be invested
  • Continued confidence in the economy on the part of buyers

Our lead article in this month’s eNewsletter explores the factors driving this market and points out one important fact: Buyers want to see more companies for sale!

The record level of M&A activity over the past several years has reduced the pool of qualified targets. This is great news if you are the owner of a middle market business today. Your company could be quite attractive to a variety of buyers if you decide to sell!

However, since seller’s markets don’t last forever, it is critical for your future to investigate current M&A market trends and how they may impact you. Right now, sellers have significant leverage with buyers, which is creating higher purchase prices.

Contact Generational Equity for Professional M&A Advice

Generational Equity is always here to assist with your exit journey. Over the past several years, we are proud to have helped more lower middle market companies (those with valuations up to $100 million) successfully exit their businesses than any other M&A advisory firm in North America. 

Our Dealmakers are skilled and experienced in negotiating within our vast buyer network and we are ready to meet with you and discuss your specific opportunities.  

Since we are expecting to see strong buyer interest in the lower middle market in the ensuing months, we encourage you to reach out to us if you are interested in attending an exit planning conference or if you prefer a face-to-face private meeting with one of our M&A professionals to consider your options.

We believe that it is vital for business owners to develop succession plans that will protect and defend the significant equity they have built into their businesses. Now is the time to begin the process of making an informed decision.

So please call us at 972-232-1121 or send an email to info@generational.com if you would like information about a conference in your area or if you would like to meet with us one-on-one. Find a conference near you using this link

And if you haven’t already done so, please feel free to subscribe to our dedicated exit planning blog using this link:

Subscribing will allow you to stay up-to-date on the latest trends in M&A planning and provide timely research to give direction as you consider your exit timing and strategies.

Thank you and I wish you and your business all the best in 2018! 

Ryan Binkley

President & CEO, Generational Equity

https://www.generational.com

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Generational Equity educated and informed us – so that we could be on the upside of a good decision (to sell).
Bil MacLeslie, CEO, ipHouse
We thank you Eric and Generational Equity making our dream come true.
Larry Moore, Owner, A Company Portable Restrooms
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
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 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
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 quickly recognized that Don was working for Sharpe Mixers above all else, and held our interests above others.
Jay Dinnison, Owner of Sharpe Mixers
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
Generational Equity’s assistance was invaluable in compiling and marketing our business.
Bil MacLeslie, CEO, ipHouse
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
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
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
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
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 would like to thank you and your firm, Generational Equity, for being our valued advisors in our journey.
Bil MacLeslie, CEO, ipHouse
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.
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
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 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
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