Insights & Info

Insights > Offshore Buyers Interested in U.S.-Based Businesses

Offshore Buyers Interested in U.S.-Based Businesses

By Generational Equity

Offshore Investors

Recently Axial, a leading online platform that matches capital providers with business owners, analyzed a growing trend that we too have been seeing the past several years: Offshore buyers with keen interest in U.S.-based companies of all sizes.

This is how Axial describes the current situation:

The United States is the world’s number one investment destination. Foreign direct investment in the U.S. reached a record $348 billion in 2015.

We predict the appetite for U.S. acquisitions will continue to grow in 2017 and beyond. According to a recent Baker & McKenzie report, cross-border M&A made up 44% of all deal value and 34% of all U.S. deal volume in Q3 2016, compared to 41% and 36% for the same period in 2015.

The level of international buyer interest in our transactions is likewise at an all-time high. In fact, we have more international buyers registered in our 34,000-buyer database than ever before. And this number keeps on growing.

Why is offshore interest in American businesses so strong?

There are a variety of reasons. First, despite our slow economic growth post-recession, the U.S. is still the largest, most stable economy in the world. This is something too many business owners overlook when marketing their businesses. Foreign buyers want “into” the U.S. because they gain access to a very desirable market.

Secondly, the breadth and girth of the U.S. economy assures most buyers of access to literally hundreds, if not thousands, of new clients post-acquisition. This is a tremendous benefit of acquiring a U.S. domiciled business.

According to the U.S. Commerce Department, “Foreign investors value the country’s skilled labor force, diverse consumer markets, research universities and a predictable, stable regulatory system.”

The real issue when you think about buyers for your business is creativity – are you imaginative enough to cast a wide net that includes offshore buyers, or are you content with simply hoping you find enough domestic targets to work with? This is a vital question and one that you need to consider carefully.

Where can you start this process of creatively thinking about buyers? At a Generational Equity exit planning conference. One of the topics we cover is how to think about offshore buyers and what to expect when you approach them. If you would like to become far more versed in exit planning and M&A trends, contact us to find out how you and your partners can attend:

Investing a few hours of your time to attend will reap huge benefits later when you find the optimal buyer for your business.

By Carl Doerksen, Director of Corporate Development at Generational Equity.

© 2017 Generational Equity, LLC. All Rights Reserved.

Make an informed decision

The best decisions in life are informed decisions. We release educational business insights like this every week. Subscribe to make sure you don’t miss the latest news, views and analysis.

Success

Success, you have been added to our list.

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
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
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.
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
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
Generational Equity’s assistance was invaluable in compiling and marketing our business.
Bil MacLeslie, CEO, ipHouse
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
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
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
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.
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 thank you Eric and Generational Equity making our dream come true.
Larry Moore, Owner, A Company Portable Restrooms
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
I would like to thank you and your firm, Generational Equity, for being our valued advisors in our journey.
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.
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
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
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
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 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.
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