Insights & Info

Insights > Time is Now for Private Equity Firms!

Time is Now for Private Equity Firms!

By Generational Equity

Time-is-Now-for-PE-Firms

As we have mentioned in past posts, now is the time for Private Equity firms (PE) to be aggressive in rolling up, adding on, and generally being very acquisitive.

A recent article in Axial supports this theme:

This is GREAT news if you are the owner of a privately held company right now! The roll-up strategy (also known as add-ons) allows a PE firm to acquire a platform company and then – via the acquisition of several smaller, synergistic entities – create a much larger holding.

As we have discussed, despite what you may be thinking, we are on the cusp of one of the strongest buyer’s markets in years. In fact, the third quarter, according to Refinitiv, was the strongest 3rd Quarters in terms of deals closed in ages.

Our company’s experience mirrors that – we have closed more deals the last six months than ever before and with over 24,000 NDAs (non-disclosure agreements), which is 45% higher than last year, we anticipate 2020 will be another record year for us.

Who would have even conceived of that back in March?

Here is more good news for you from the Axial article:

Benefits of Being First

Being the first acquirer to approach a target can be beneficial. To determine whether there are independent operators of significant size to be rolled up, buyers can conduct market surveys well in advance of communicating with prospective targets. We advise buyers to think about the revenue estimates and geographic distribution of those qualified opportunities, as well as how auction processes are unfolding in the industry.

The point is that from a buyer’s perspective, you have to move fast now to be the first to approach a target. From a seller’s view, this means that you need, now more than ever before, sound professional M&A advice because buyers being active is great, but they will always be looking to cut the best deal for themselves, not for you!

The reality is that even if your exit plans are in flux, and you are working hard to survive this pandemic, it is NEVER too early to hire an M&A advisor to help you build your business and to make it “buyer ready”.

We created our consulting team because we recognized that building and preparing a business for buyers can often take years and it requires the work of experienced professionals to make it happen. Our Grow and Exit conferences are designed to help business owners learn how to build a business that is buyer ready.

If you have questions about how to build a buyer ready business, you should set aside a few hours and attend one of our conferences. I can guarantee you will not come away disappointed. Here is what a few of our clients have to say about the value of our growth and exit conferences:

Even if you have attended one of our conferences in the past, I would highly recommend that you have a refresher course on the exit planning journey, because so much about the process has become more complex in the past 7 months.  

If you are interested in attending a conference near you, please call us at 972-232-1121 or use the following link to find a conference near you:

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

© 2021 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.

Generational Equity’s assistance was invaluable in compiling and marketing our business.
Bil MacLeslie, CEO, ipHouse
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
Dear Chris and Andre, I just wanted to say thanks for all your help. Even though this process was not an easy one, it was comforting to know that I had a capable team standing beside me. You made me feel like we were almost your only client or at least the most important one. Thanks again, and I will recommend your service in the future.
Shenille Engelhart, Owner – CLS Technology
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
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
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
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 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
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 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
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 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
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.
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
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
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 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
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
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
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