We can report that the M&A Market is really Picking Up Steam
The first quarter of 2011 has come and gone! We have seen a noticeable uptick in deal flow and deal quality at the end of Q1 and into Q2. The owners that we have spoken to seem to be relatively happy with their 2010 results, current business momentum, and the 2011 outlook. In particular, with these economic tailwinds, buyers are once again active and are eager to buy. Are you ready to sell?
As always, we like to share what we are seeing:
1. The Parliament Hill situation is very much in flux but some things are certain: the cheap supply of money is coming to a close...now is a good time for business owners to sell;
2. Market valuations remain at attractive levels for exiting owners - seller expectations and earnings growth is normalizing which should drive transaction volume;
3. Debt for lower-middle market companies is healthy - we see very attractive term sheets from both asset lenders and cash flow lenders have re-surfaced;
4. There are options for retiring business owners – strategic industry buyers are willing and able to provide ongoing management leadership requiring only a limited period of transition so…...
What Are You Looking For?
We have clients looking to acquire profitable, growing companies in low concentration growth industries. They wish to make investments and are willing and able to provide operational leadership to the companies they acquire.
Target Financial Profile Sought:
· Sales between $2.5M and $50M
· EBITDA close to or greater than $1M
Most Service Industries are of interest as are specialized manufacturing and distribution.
Our Background: ROCG is a consulting group specializing in business transition services exclusively for privately held entrepreneurial companies in the lower mid-market segment. Our specialists focus on building business value for entrepreneurs, through strengthening management teams and eliminating dependencies. We recognize that many business owners wishing to retire are left with limited traditional transition options for selling their businesses. Rather than selling to a competitor or selling to buyers who typically require exiting owners to stay on for at least 3 to 5 years post-transaction, we have been successful at arriving at transaction terms that satisfy both the objectives of our buyers and sellers.
Why We Are Different: We allow exiting business owners to step away from their business with a smile after an orderly transition. Aside from providing many strategic transition alternatives to our clients, we pride ourselves on using a straightforward practical approach in aligning operational expertise and capital, along with a longer-term commitment to flexible deal structures that speed decisions and meet owners' needs.
Please contact us to discuss possible opportunities - we offer free initial consultations and will develop a customized process oriented proposal as to how we envision providing you with solutions to the closing of a transaction. To learn more about the ROCG transition process, visit us at business-transtion.com. Let's talk in 2011!