2015 is shaping up to be a very big year for M&A, IPOs due to the low cost of capital, the US economy expanding, and higher valuations.
Generally, an investment banker is working on large transactions such as raising $100mm for a company to continue to expand, or selling a large company with $200mm in revenues.
Manufacturing companies are in great demand today. Private equity buyers, owner/operators, and strategic buyers are looking for manufacturing companies all over the US right now.
2014 will end as a great year to sell a business. The strategic buyers came back in the market in a large way. Many of the top deals in the US this year, were done by strategic buyers. What is a strategic buyer, and why this year?
Family Offices come in all shapes and sizes, but are usually set up for families with a combined net worth of over $250mm. Generally the patriarch or matriarch as generated significant wealth through building a business or a portfolio of real estate, and are looking for higher returns on their investments.
Coming off a year when rising valuations limited fund managers’ ability to source and close deals, private equity leaders are anticipating another year of moderate deal flow volume. The recent PErspective Private Equity Study conducted by BDO USA found that only 15 percent of GP respondents predict they will close more than five deals in 2014, which is a drop from the 22 percent of fund managers who predicted in 2013 that they would close more than five deals.
This will be the theme for 2014. Buyers are looking for solid companies to buy in most industries. Healthcare, staffing, PEOs, medical practices, manufacturing, distribution, technology, internet and business services are all great industries right now.