Insights & Info

Insights > What to Expect from M&A in 2020

What to Expect from M&A in 2020

By Generational Equity

M&A 2020

A few months ago, Deloitte conducted their annual survey to gauge predicted M&A activity and trends in 2020. Deloitte’s survey took into account opinions from 1,000 executives and private equity investors and, not surprisingly, most anticipate that the longest-running seller’s market will continue in 2020. According to an article published in Axial, there are two key factors driving this expectation:

There are still record levels of dry powder at U.S. private equity firms, and U.S. corporations held a total of $1.55 trillion in cash at the end of 2019, only a slightly lower number than the end of last year and much of which they plan to use for mergers and acquisitions.

Although slightly less optimistic than those surveyed in 2019, the Deloitte data still shows that expectations for a strong M&A market will continue in 2020:

Source: Deloitte 2020 M&A Trends

As you can see, 63% of the respondents in 2019 think that 2020 deal volume will continue growing this year, and a similar number feel deal value will increase. Although slightly muted when compared to 2018 results, the fact is that a sizable majority expect 2020 to be an active year. We concur based on early results this year for deals we have in the market right now.

This is great news for business owners that have prepared themselves (and their companies) to take advantage of another year of a record seller’s market. Interestingly, buyers are so aggressively looking for good deals right now that more and more business owners are receiving unsolicited offers for their business than ever before.

This makes the need for hiring professional guidance vital to prepare your business for when the phone rings and, more importantly, prep you to aggressively approach buyers in a logical, well-thought-out manner.

One of the many reasons for our leadership position in the middle market M&A arena is due to the well-developed process we have honed over the years. Buyers who we deal with regularly know that when we represent a seller, our goal is to get as many indications of interest as possible and to create what we call “a limited auction” to obtain the maximum value for our clients.

Do we succeed in this 100% of the time? Of course not nor would we ever claim to. But we do thrive in creating optimal interest in our clients since buyers understand the critical role we play when representing a client in the market.

To find out if we can help you in 2020 (or beyond) take advantage of the current M&A market, contact us and we will confidentially meet with you to discuss your options. To learn more about who we are and what we do for our clients, use these links:

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

© 2020 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.

Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
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.
Generational Equity educated and informed us – so that we could be on the upside of a good decision (to sell).
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
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
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
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
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 thank you Eric and Generational Equity making our dream come true.
Larry Moore, Owner, A Company Portable Restrooms
Generational Equity’s assistance was invaluable in compiling and marketing our business.
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.
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
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.
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
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
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
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