Article Summary: Even With Valuations High, PE Sees Strong Exit Environment | Axial

I've pared down the article to the key points.  If you want to read the entire article click the link at the bottom of the summary -- Eric Gall

By Emily Sackett, Axial | June 23, 2016

Axial surveyed their PE members for their pulse on the current deal environment. Forty-five middle market investors shared their thoughts.

The Exit Environment

• 71% say the exit environment was positive in 2016. 
• 42% said they are waiting until 2017 before selling.
• Buyers are more likely to be strategic investors (40%) vs. PEGs (33%).
• In hot industries like healthcare, corporate buyers may justify higher prices due to expected synergies
• 2/3rds expecting to sell to strategic buyers expect to do more deals with private companies vs. publicly traded corporations. 
• 20% believe their next buyer will be a fundless or independent sponsor, who have become increasingly active in the middle market. 

Deal Dynamics

• 69% will deploy more or the same amount of capital into add-on and platform investments.
• Many middle market investors are moving down market looking to smaller add-on companies.
• Co-investments is increasing between PE, family offices, or other PE shops to partner on a deal.  31% will complete more co-investment deals.  
• Generalist investors with a broad industry/sector mandate are more likely to complete co-investments this year (38%) compared to specialists (20%).

Article LINK

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com or my personal website at www.BuySellFLbiz.com.