The Window for Privately Held and Family Businesses

The expected increase in M&A activity involving privately held businesses is underway. According to a recent article in Inside Counsel, “the favorable M&A market conditions of cash-rich companies, increased consolidation, need for business growth, strong balance sheets, limited opportunities for organic growth, and low interest rates” are likely to persist in 2015. However, fear of this window closing is also top of mind.

WindowBaby boomers facing retirement are about to set off a huge wave of deals. These boomers are facing the potentially emotional decision of pursuing either inter-generational transfers or third-party successors. But with the current M&A market reaching highs, these owners should start planning this transition immediately in order to benefit.

At the same time that many aging owners are facing the prospect of selling their companies, there’s also a trend for privately owned and family companies to spark new growth through acquisition. This process won’t necessarily be easy because these companies will be competing with private-equity firms and large strategic buyers looking for quality targets. A focused strategy will help them to meet their goals.

To read the complete Inside Counsel article, please click here.


 

SDR Ventures is committed to helping managers and owners of privately held companies achieve their business and financial goals. To learn more about the unique window of opportunity that exists in 2015, please read the “State of the Market” section of our services page.