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Insights > Why Are Mergers and Acquisitions Closing This Year?

Why Are Mergers and Acquisitions Closing This Year?

By Generational Equity

Road City 2016

At Generational Equity, we find it fascinating to discuss with buyers post acquisition the reasons they acquired one of our clients. Here, we highlight the key factors behind mergers and acquisitions transactions closing during 2016.

The request in the Deloitte 2016 M&A Trends survey was a good one:

Please rank your top 3 M&A objectives, in order of their importance, with respect to your company’s M&A strategy for the next 12 months.

And so were the responses:

(You can read the rest of the survey here)

If you look closely at this list, the top three responses this year all dealt with expansion of customer base, expansion of products/services, and the pursuit of greater efficiencies. Technology and obtaining cheap assets were both scored low by the respondents.

Remember that this survey was comprised of results from 2,292 executives with corporations and private equity firms in the U.S. So the survey results are very reflective of the goals and motivations of M&A events this year.

Far too often business owners wonder, Why would anyone want to acquire my company? What does the business have to offer to professional buyers, the type that will pay top dollar?

The reality is this: If you properly package, promote, and market your acquisition opportunity, the odds are good that you could attract one of these buyer types based on the tangible (and often intangible) assets your business possesses.

It is fascinating to talk to buyers post acquisition and learn why they acquired one of our clients. Quite frequently the areas of the business that attract them are not what the business owner contemplates when they first engage us. Our role as professional deal makers is to help the business owner to think outside of the box in its truest form. Because only then can we determine the types of synergies in product, location, customer base, and dozens of other categories that will attract the optimal buyer mix for our clients. This is what a few of our clients say about our marketing skills:

The common theme you will hear throughout all of our testimonials is this: I probably could have found a buyer on my own; however, it would not have been an optimal buyer and the deal structure would have not been as favorable.

Clearly your business will have some intrinsic interest to professional buyers if you are able to explain why. And that is where the real strength in the Generational Group is found: Our deal makers have ages of experience in explaining to skeptical buyers why our clients are good matches. We understand not only what motivates buyers but we also are clearly able to explain why our specific client is a good match for each individual buyer. This is a skill set that takes years of deal making experience to develop. Our team is second to none in the lower middle-market:

If you are interested in finding out if our services are a good match for your business, please call me at 972-232-1125 or email me at cdoerksen@generational.com and we can start a dialogue about what we can do for you.

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

© 2016 Generational Equity, LLC. All Rights Reserved.

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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.
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
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 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.
Generational Equity’s assistance was invaluable in compiling and marketing our business.
Bil MacLeslie, CEO, ipHouse
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.
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
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 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
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
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
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 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
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
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 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
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
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.