Surprises to selling a company in COVID-19

We had several acquisitions working in March when everything shut down and were not expecting to initiate any new engagements until late summer. However, we did start discussions on a new acquisition at the end of May. Surprisingly to us, the response was overwhelmingly positive and, as of last week, we have nine bona fide offers to acquire this company, five of which are at or above pre-COVID market value. How could this be?

How does a Presidential Election Impact the Sale of My Business?

What happens to M&A in the run up to the 2020 Presidential Election? In past election years with an incumbent President, there has been a slowdown in M&A activity from October into mid-November, but how about 2016? Most experts got it wrong. Prior to the 2016 Presidential election, …

How long does a Private Equity Group wait before selling your Company again?

Most people think of a private equity holding period as between 3 and 5 years, which could cause a significant and legitimate concern among business owners. However, there is no hard rule to apply to this asset class and to make a determination whether or not to consider a PEG as a prospective buyer based upon the median hold period, would be to make a one-dimensional decision.

When should you sign a Letter of Intent – Business Buyer vs. Business Seller?

One purpose of a LOI is to document a mutual agreement between the buyer and seller on the major points of the purchase and sale of a business. With this in mind, a LOI is often signed much too early in the process. There is an understandable eagerness if you are selling a business to receive a Letter of Intent from a prospective buyer as early as possible. In some cases, business owners are even advised that they should request a LOI in order to learn price and terms from the prospective buyer.

Mergers & Acquisitions Report and Outlook Q1 2025

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
In 2024, the U.S. mergers and acquisitions (M&A) landscape experienced a notable resurgence, setting the stage for continued growth in 2025. Deal Volume and Value: Through September 2024, both private equity and corporate M&A deal volumes increased by 17% year-to-date compared to the prior year. Despite this uptick, momentum decelerated later in the year due to elevated uncertainty, in part related to the outcome of the presidential election. In 2025, consensus among analysts is for a ...

Mergers & Acquisitions Report and Outlook for Fall/Winter 2024

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
The first half of 2024 demonstrated a dynamic landscape for mergers and acquisitions (M&A) in the United States. Despite macroeconomic uncertainties, including the interest rate environment and inflationary pressures, strategic consolidations gained momentum, driven by factors such as technological advancement, supply chain optimization, and market expansion. The first half of 2024 recorded ...
Mergers & Acquisitions Report

Mergers & Acquisitions Report, News and Outlook for Q1 2024

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
In the central region of the United States, M&A activity has remained robust, but across the broader United States, activity was muted in the first half of 2023, picking up through the remainder of the year. Looking ahead to 2024, two factors that will likely bring greater activity: i) stabilizing interest rates contribute to higher valuations and/or higher activity, and ii) consolidation trends in many industries. For the first time in ...
Q1 2024 Outlook Mergers Acquisitions

Mergers & Acquisitions Report, News and Outlook – ClearRidge Quarterly Update

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
2023 has been a stronger year for M&A than many were expecting. At the same time, different industry sectors have registered greater disparity in valuations, deal activity and deal volumes than we typically see. We continue to have strong demand for acquisitions and more clients bringing businesses to market than in a typical year. This may be isolated to Oklahoma, Texas, and the Midwest, but our feel for M&A is …
Mergers & Acquisitions Report

What’s next for Mergers & Acquisitions in 2023? ClearRidge M&A Trends and Outlook

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
While many anticipated a slowdown in 2023 with talks of a recession, we haven’t seen that in our central and southern region so far. At ClearRidge, we have had one of the busiest starts to any year since our founding fifteen years ago.  As we continue through 2023, we’re anticipating a further pickup in deal activity as there continue to be unprecedented levels of cash available for acquisitions, both from strategic and private acquirers.  Even in the event of a mild recession, company balance sheets are stronger now than when the US economy entered previous recessionary periods. With higher interest rates, companies have been committing more equity to ...
MergersAcquisitionsUpdate_03.02.2023
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