The weak economy is the greatest obstacle to M&A activity, according to 45% of the investment bankers, private equity professionals, corporate development executives, lawyers, accountants and business consultants polled.
Source: Association for Corporate Growth- 68% of middle-market merger professionals say the current market is a buyer’s market. 75% said it was a seller’s market in June 2007. Source: Association for Corporate Growth- - Advertisement -
64% of family business decision makers say they have regular, formal valuations of the worth of their business. Source: 2007 American Family Business Survey. Family business owners likely to sell 9.1% of family businesses reported that they “strongly disagree” with this statement: “Senior generation wants business to stay in family.” 13% of family businesses reported that they “strongly disagree” with this statement: “Next generation committed to business ownership.” Source: Laird Norton Tyee Family Business Survey 2007, Facilitators of M&A in the current market • Capital reserves of some acquirers • Good multiples for acquirers • Distressed deals Source: Association for Corporate Growth- Top 3 exit planning objectives cited by at least two-thirds of owners • Achieving personal financial security • Maintaining harmony within my family • Achieving the maximum value for the business Source: Nationwide survey of closely held business owners Exit planning concerns cited by about 8 in 10 owners: • Minimizing taxes • Adequately determining the value of the company • Meeting other part-owners’ objectives Source: Nationwide survey of closely held business owners 27% of family business respondents say the availability of additional venture capital funds to back expansion is “quite important” or “very important.” Source: PricewaterhouseCoopers Global Family Business Survey, 2007. |
First on the agenda: M&A
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