The middle market segment, consisting of companies with annual revenues between $10 million and $1 billion, has emerged as a thriving area of opportunity and growth for business owners and sellers.
M&A advisors are rapidly increasing in popularity, particularly among the lower middle market.
If you want to grow your company and build long-term value, an acquisition is one of the most powerful tools at your disposal. But while many deals make it to closing, few achieve their goals. Seventy to ninety percent of all deals fail, and 50-60% actually decrease shareholder value.
With the final passage of the Tax Cuts and Jobs Act, there may be a flurry of M&A activity thanks to higher wages and greater opportunities for corporate investment.One of the most significant changes in the act included a shift in the corporate tax rate from 35% to a flat 21%, as well as an end to the corporate alternative minimum tax.
Successfully selling your business is about more than just building something worthwhile. The way you approach the sale, as well as the preparation you undertake in the years leading up to the sale, can greatly affect the terms of the sale, as well as the final sale price. Consider these common sell-side M&A mistakes.