Tuesday, March 5, 2013

Will 2013 See Record Valuations for Middle Market Business Sales? | AxialMarket

"Business owners time their exits for many reasons: health, retirement planning, availability or lack of family successors, competition, technology change and many more.  Yet overwhelmingly the question we are most often asked as a financial advisor to entrepreneurial companies is “What’s my business worth?”  All things being equal, a rational business owner will presumably choose to sell at a point of optimal value for his or her interest in the firm.  For the reasons outlined below, we believe that the next eighteen months may see the highest pricing for good middle market companies in the thirty years I have been in the M&A advisory business.

Historically the market for mergers and acquisitions is one of the most volatile on the globe.  In our experience the market is very cyclical with three to four years separating peaks and troughs and six or seven years to cover a full cycle.  The last bull cycle for M&A peaked in 2006-2007 and the market trough was witnessed in 2009-2010.  2011 and 2012 witnessed some moderate improvement, with Q4 2012 being particularly strong.  2012 was Focus’s best year since 2007."

Read more at:

Will 2013 See Record Valuations for Middle Market Business Sales? | AxialMarket

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.

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