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Tailwinds Continue for M&A Deals in 2017
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There are good indications that the favorable tailwind continues for M&A activity in the coming year.  Key indicators paint a clear picture: buyers are actively seeking opportunities that advance their strategies. Owners are aging, and looking for transition options.

Citizens Bank Commercial’s annual study on the appetite for M&A deals found that “he number of mid-sized U.S. companies already engaged in or open to buying and selling has risen sharply since last year, setting the stage for a very active 2017 merger market.” [1] Among the findings:

  • 53 percent either currently involved in or open to considering a deal, compared to 34 percent last year
  • The number of buyers is increasing with 73 percent currently involved in or open to considering deals, up from 60 percent last year.
  • Mid-market decision makers feel company valuations may not have peaked just yet.

Allstate/USA Today have developed a Small Business Barometer  based on input from thousands of owners across all markets. It found resilience and optimism with 90% believing the benefits of ownership outweighs the challenges. Also, 70% feel their businesses have grown the same or more as last year. Often these businesses are best transitioned using M&A sales processes.

The most recent Market Pulse survey, a survey we participate in and which is conducted by M&A Source and IBBA with Pepperdine University, reveals that deal multiples remain very as strong as 2015. Also, there are more well-funded buyers in the market now than top quality sellers, so the seller market continues.

The M&A process that we use involves actively seeking strategic, synergistic and financial buyers. We welcome the opportunity for an exploratory conversation, whether a sale is in the short or longer term. It is nice to learn about your business and to start talking about possibilities.

M&A Source is a volunteer and advisor driven community whose focus is on helping you capitalize on this trend. Our benefit programs, ranging from PEI Services to First Research, deliver practical help in getting and completing engagements.

Footnote [1] Middle Market M&A Outlook 2016, Citizen Bank Commercial

John Howe, M&AMI
Director, Business Transition Strategies
2017 M&A Source Chairman
http://www.businesstransitionstrategies.com

annual study link
http://investor.citizensbank.com/about-us/newsroom/latest-news/2016/2016-12-07-130122855.aspx

small business barometer link
https://www.allstate.com/tools-and-resources/small-business-barometer.aspx#/details