Mastering The Market
A Comprehensive Guide to M&A Strategies & Insights
Welcome to our comprehensive guide on market timing in the M&A landscape. Providing knowledge into the crucial aspects of due diligence, starting from its fundamental importance to navigating the complexities of the middle market. Through insightful industry reports, we analyze the current M&A outlook, offering valuable perspectives for both seasoned investors and newcomers. Join us as we explore the strategic implications of timing in M&A transactions and uncover key insights to inform your decision-making process.
Why Negotiating the Tough Stuff Upfront in a Letter of Intent is Crucial in M&A TransactionsWhen you're selling your business, the most challenging negotiations are the ones that often get pushed aside, but they are the ones that should be tackled upfront. European Middle-Market Private Equity UpdateAccording to newly released data from Pitchbook, middle market private equity investment showed further signs of recovery in Europe over Q3. Year-on-year data revealed that European PE investments increased by 27.5%, supported by lowered interest rates and dry powder bolstered dealmaking.Managing Expectations While On MarketDeciding to sell your business can be a nerve-wracking yet exciting endeavor. It marks the culmination of many years of dedication, hard work, and strategic planning. As you prepare to go to market, engage with buyers through site visits, field and respond through information requests from interested parties, and hopefully navigate potential negotiations with buyers, it is vital not to overlook the significance of the market feedback you may receive while fielding these various levels of interest. The input received throughout the stages of this process is paramount to consider when managing your expectations while you are on the market. Understanding and finding the overall market consensus of feedback can help you determine what may add value to your overall offer or detract from your valuation. An often overlooked aspect is considering the market feedback generated by interest and adjusting your expectations accordingly.Are Financial Or Strategic Buyers Better?It is common for business owners to question what is better—a financial buyer or a strategic buyer. The answer depends on the buyer, their offer, and most importantly, their fit with you and your company. In most cases, it truly comes down to value.Beyond The Price Tag: Non-Financial Considerations In Business ValuationIt’s easy to be swept up in the flood of advice and methods for valuing a business. A quick internet search provides almost infinite resources right at your fingertips. From more general approaches to specific analyses, there is a lot of financial data to parse through, regardless of the methods you choose.Do I Really Need an Advisor When I Already Have a Buyer That Has Approached Me?An ever-increasing number of businesses receive unsolicited approaches from buyers yearly, yet a significant difference exists between being accidentally bought and purposefully sold.
The ESOP Advantage in M&A: What Buyers and Sellers Need to Know
ESOPs have a special place in the business world. There's a bit of mystery around them as they are outside of typical business structures, and many need to understand how they work, much less their role in an M&A transaction. Some ESOPs seeking to sell are curious if they can do so with an ESOP in place. Others looking to buy or be bought out by an ESOP aren't sure of the proceedings. Fortunately, Benchmark has managed both situations and can navigate deals with these added layers of complexity.
U.S. Private Equity Middle Market UpdateAccording to newly released data from Pitchbook, middle-market private equity (PE) dealmaking in the United States in the first half of 2024 has been stable, with buyouts tracking at $345 billion and the number of deals on pace to hit 3,400 for the entire year. This makes it the third-highest middle-market PE dealmaking year on record (data does not include growth-equity deals and growth-equity platform add-ons). The middle market is companies with enterprise values between $25 million and $1 billion.2024 Global Accounting Services Industry ReportThe global accounting services sector continues to grow steadily, up from $652.32 billion in 2023 to $676.73 billion in 2024 at a compound annual growth rate (CAGR) of 3.7%. The market is forecast to see this growth continue in the next few years, surging at a CAGR of 4.4% to reach$804.27 billion in 2028. Is Programmatic M&A Right for My Business?Programmatic mergers and acquisitions are a strategic approach to M&A deals that companies use to acquire several smaller companies to achieve certain goals, such as growth and value creation. This strategy differs from traditional M&A transactions, which usually involve singular transactions and higher valuations.Inheriting A Family Business: Should I Sell?It happens all too often. A family-owned business is at the juncture where the owner is retiring, facing health issues, or has unfortunately passed away. However, the inheritor(s) in line to take over the company either already have their own successful careers or simply do not have the interest or passion to assume the job. Instead of taking the time to find a solution for the health of the business, they just let the business fold. This is sad for many reasons, including the fact that you could have made a pretty penny by selling the company to the right buyer, but especially for the many employees who counted on that business to keep them employed and help them support their families.Essential Questions to Ask Potential Buyers During the M&A ProcessWhen navigating the M&A process, it is crucial for sellers to thoroughly assess potential buyers early on to ensure a good fit. After buyers review your Confidential Information Memorandum, they will naturally ask for a call with you to learn more. Here is a list of essential questions to ask every prospective acquirer:Seller Motivation – What Goes Into The Decision To Sell?Are you considering selling your business? Deciding when and why to sell is one of the most significant decisions you’ll ever make as a business owner. While maximizing financial proceeds is often at the forefront of these decisions, it’s essential to recognize that it’s not the only factor. Life circumstances, time with family, and other qualitative considerations can often outweigh financial gain. To help you navigate this complex process, we invite you to watch our latest webinar: Seller Motivation: What Goes Into The Decision To Sell?
Navigating The Path Of A Business Sale: Turning Options Into Informed ChoicesAs a business owner, you've poured your heart and soul into building your company. The day might come when you consider selling your business, but the journey from contemplation to transaction is far from straightforward. One of the most powerful realizations in this process is that while you may be considering multiple avenues for a potential sale until you have offers, these remain options. Until you have a choice to sell, the only real choice you have is to continue running your business just as you did yesterday. However, strategically exploring the market and engaging with various buyer types can transform your myriad options into informed choices.Healthcare Services Private Equity Industry UpdateIn April, we published our 2024 Global Healthcare & Medical Industry Report, which covered the surging value of the healthcare market and the positive expectations regarding M&A activity and deal value for this year. As we move further into the year, we are seeing more positive private equity trends and investment strategies for the healthcare services industry, as dealmaking is now beginning to pick up momentum following a bit of a decline in Q2 of 2024. Investment pipelines are starting to build up at the same time that seller expectations are being tempered.Middle Market Business UpdateMiddle-market companies represent significant growth opportunities for the global economy. It is a rapidly growing, dynamic, and resilient part of the economy, defined by businesses with between 50 and 250 employees. The middle market is responsible for more than 20% of commercial spending worldwide. Energy & Power Spotlight: Global Transformer Industry ReportA vital segment of the energy and power industry, the global transformer industry grew at a compound annual growth rate (CAGR) of 6.7% from $89.31 billion in 2023 to $95.32 billion in 2024. The sector is on pace with a CAGR of more than 6.5% between this year and 2029.2024 Global Bakery Products Industry ReportThe global bakery products market was valued at $536.4 billion in 2023 and is forecast to reach $734.5 billion by 2030. That is a compound annual growth rate (CAGR) of 4.6% for the seven years.What Is ‘backlog’ And Why Does It Matter?In financial terms, backlog can refer to several factors. It can pertain to a company’s workload buildup, whether financial paperwork must be completed, a backlog in sales order fulfillment, or production capacity. Sectors that commonly deal with backlog include manufacturing, software development, and construction.