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Smaller Transactions Remain Popular with Buyers

By Generational Equity

Smaller Transactions

According to second quarter data from Pitchbook, smaller transactions continue to retain traction despite the impact of COVID on M&A transactions overall:

As you can see from the chart above, over 60% of all North American M&A transactions in the 2nd quarter of 2020 were valued under $100 million. This is what we call the “lower middle market” and it is the valuation range that Generational Equity has had the most success over the years.

But most importantly for you, if you own a company in that value range, the reality is that buyers are still very active. In fact, Generational has had two of its busiest months in June and July of this year in terms of deals closing, despite the impact of the pandemic.

The key, of course, to successfully finding investors or buyers for any company is how well prepared the business is for due diligence  AND, perhaps even more importantly, how well prepared the business owner is to actually exit the business.

So how well prepared are you? How dependent is the company on you for all key decisions? Are all client relationships based on your friendship with them? How many suppliers of your materials do you have? Are your financials in good working order? Finally, and most importantly, how truly committed are you to the exit process?

Key questions one and all…

If your answer to any of these is “I am not sure”, then you need to attend a Generational Equity growth and exit planning conference soon. These meetings are designed by business owners for business owners and are created to educate you on the optimal process to exit your business for maximum value.

To learn more, please use the following links:

Carl Doerksen is the Director of Corporate Development at Generational Equity.

© 2020 Generational Equity, LLC All Rights Reserved

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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
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Andy Graham, Vice President, Modern Heating & Plumbing
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Andy Graham, Vice President, Modern Heating & Plumbing
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Bil MacLeslie, CEO, ipHouse
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Larry Moore, Owner, A Company Portable Restrooms
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Bil MacLeslie, CEO, ipHouse
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Michael J Polarek, President, Paragon Packaging
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Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
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.
We thank you Eric and Generational Equity making our dream come true.
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
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
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
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Terry D. Wickman, President, Keytroller
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.
Generational Equity educated and informed us – so that we could be on the upside of a good decision (to sell).
Bil MacLeslie, CEO, ipHouse
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Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
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Jay Dinnison, Owner of Sharpe Mixers
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
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Robert Evans, President and CEO of Mealtracker Dietary Software