Private equity firms in the U.S. are sitting on more dry powder than ever before, and middle-market businesses will be among the biggest beneficiaries. That is the evaluation of the specialists at PitchBook, a trusted resource for many VC, PE and M&A firms. In their 2017 PE & VC Fundraising Report, the middle-market stands out as the area with the most opportunity for private equity investors:
That’s putting it mildly. The middle-market continues to dominate a period of record-breaking fundraising for private equity firms. PE firms are raising more capital currently than at any point post-recession, and remain on pace for a 24 percent increase in value compared to 2016. Mid-sized companies represent a strong part of that activity (nearly 50 percent of total deals), and that trend is set to continue for the considerable future.
Of course, megafunds will be more commonplace in the headlines, like this year’s record-breaking $24.7 billion invested in the Apollo Investment Fund IX. But, the real stories lie beneath the surface, where movement in the lower and core-middle-market sectors will drive private equity fundraising for the next five to seven years.
Here are some other key findings from PitchBook’s report and a survey compiled by Probitas Partners:
If you own a mid-sized business and have ever wondered “How much is my company worth?” the current state of private equity in the U.S. and beyond could have enhanced its valuation in the eyes of the right buyer.
Whether it’s acquiring a company to enter a new industry, or using a business to enhance another already in their portfolio, the lower middle-market is going to be attracting significant attention from buyers. The only question is, will you be at the heart of this, or will you miss the boat?
Competition in the lower middle-market is intensifying compared to the prior year, and with more dry powder laying around than ever before, there is massive opportunity to exit your business for the optimal value. But the longer you wait, the more companies will be vying for attention. Guidance from a professional M&A advisory firm like Generational Equity will help you take advantage of these opportunities and ensure you’re not left thinking what might have been.
As we’ve noted numerous times before, timing is everything in mergers and acquisitions. The best time to sell a company is when your company is growing and buyers are active. Right now, PE firms can’t find enough well-run companies to invest in! So, if you are thinking it’s time for a new chapter in your professional story, the next year or two could be the ideal time to exit for the highest possible return.
Start your next chapter by attending one of our M&A executive conferences. These are completely complimentary, and held across North America, they will give you a valuable insight into the process of exiting your business at the optimal time for the optimal value. You will understand what private equity firms are looking to invest in with their surplus dry powder, and how to grow your business to stand out to buyers.
Contact our team at Generational Equity today at 972-232-1121 to find our next conference near you, or arrange a meeting with our experienced professionals.
The information we learn from customers helps us personalize and continually improve your experience. Here are the types of information we gather.
We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice.
By submitting my name electronically and clicking the “submit” button, I understand that I am providing Generational Group, Inc., Generational Equity, LLC, Generational Capital Markets, LLC, DealForce LLC, their affiliates, representatives, contractors, etc. (“Generational Group”) my telephone number, which may include a number that is wireless and/or a number that is on a national, state, or other Do Not Call registry or list. I hereby consent and agree to receive telephone calls including any autodialed and/or pre-recorded telemarketing calls and/or text messages (telemarketing) from or on behalf of Generational Group at the telephone number provided. I further consent and agree that telephone calls may be made using automated technology such as an automatic telephone dialing system, artificial or prerecorded voice, or SMS text messaging. Consent is not a condition of purchase. I further warrant and represent that any telephone number provided is not on any state or national Do Not Call Registry and that by agreeing to these terms and conditions that if any number provided is on any such registry, I hereby consent and agree to receive telemarking calls and/or communications including any phone calls, text messages, URLs, links, emails, etc. to the telephone number(s) and/or any e-mail addresses provided. I understand that by entering my name in the electronic form provided, that I am signing my name as equally as if it was my handwritten signature and that it is my intent to provide an “electronic signature” as that term is defined in state and federal law, as well as industry practices for e-commerce.
For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Group may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Group. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Group at its office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Group may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Group does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Group will be deemed NOT to be confidential. By sending Generational Group any information or material, you grant Generational Group an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Group is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Our computer system protects personal information using advanced firewall technology.
Information Generational Group publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Group intends to announce such products, programs or services in your country. Consult a Generational Group representative for information regarding the products, programs and services which may be available to you.
Generational Group makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Group web site, please understand that it is independent from Generational Group, and that Generational Group has no control over the content on that web site. In addition, a link to a non-Generational Group web site does not mean that Generational Group endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, Trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Group BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Group.
Success, you have been added to our list.
it all started with a conference.
start your story today,
speak directly with one of our senior advisors +1-972-232-1121