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.
The extended seller’s market – with unprecedented valuations and aggressive debt availability being driven by non-bank lenders – continued unabated in the second quarter of 2017 according to our recently released GF Data M&A and Leverage Reports. GF Data collects and publishes proprietary information from over 200 PE sponsors on completed transactions valued between $10-250mm.
No one planning a business sale is eager to spend more than absolutely necessary in the pursuit of a good deal.
Buy-side teams are highly adept at detecting issues that can affect a deal. Even the best teams, however, may miss IT and technical aspects of the deal. These issues can greatly affect the cost of integration, while lowering the return on the investment. These seven sources of technical debt can significantly lower the value of a deal, while increasing costs.
2016 was an active year in M&A for mid-market decision makers, driven largely by a continued sluggish economy, a perception of topped out valuations and concerns that the period of low interest rates was coming to an end.