Brokers were optimistic when looking ahead at 2014 as 87 percent projected an increase in completed deals and the majority of advisors anticipated that overall deal volume will increase, according to the Fourth Quarter 2013 Market Pulse Quarterly Survey Report published by the
The quarterly report released today aims to evaluate market conditions for businesses being sold in
“This report confirms the positive trends that have been reported recently,” said
“It appears that 2014 is shaping up to be a perfect storm for M&A activity,” said
Individual buyers, most of them first time business owners, acquired smaller businesses at a much greater rate than larger financial firms at the end of last year. Existing companies had a larger presence in the
Given that individual buyers dominated the market for deals under
“The biggest mistake sellers make is clinging to unrealistic expectations when valuing their company,” says Dr.
Advisors reported three common hurdles to closing deals in 2013: 27 percent pointed to valuation issues, 19 percent cited financing issues, and 13 percent reported deal fatigue. Conversely, the biggest contributors to getting deals done in 2013 were clear price expectations (33 percent ), a larger buyer pool (26 percent ), more sellers in the marketplace (13 percent ), and more aggressive financing (11 percent ).
Other key findings:
• Larger deals took more time to close and they were also more likely to draw buyers from farther away. Forty-nine percent of sellers in the under
• As deals scaled larger, lenders contributed a larger percentage of financing. In the
• Retirement was the number one reason driving sellers to market in all sectors except under
• Year over year, deals closed faster in Q4 2013. Analysis showed a sizable seven-month drop in the median close time for businesses valued at
The fourth quarter 2013 Market Pulse Quarterly Survey Report is available at: http://bschool.pepperdine.edu/privatecapital.
A popular and frequent speaker at professional meetings and conventions, Walt speaks on trends in business sales, growth through acquisition, and negotiating the M&A process. He is also a nationally recognized instructor who has authored educational seminars, webinars and workshops for M&A intermediaries and allied industry professionals.
Walt has held leadership positions in professional organizations including the chairmanship of M&A Source.
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Founded in 1983, IBBA is the largest non-profit association specifically formed to meet the needs of people and firms engaged in various aspects of business brokerage, and mergers and acquisitions. The IBBA is a trade association of business brokers providing education, conferences, professional designations and networking opportunities. For more information about IBBA, visit the website at http://www.ibba.org.
Founded in 1991, the M&A Source promotes professional development of merger and acquisition professionals so that they may better serve their clients’ needs, and maximize public awareness of professional intermediary services available for middle market merger and acquisition transactions. For more information about the M&A Source, visit the website at http://www.masource.org.
IBBA/M&A Source Contact
Read the full story at http://www.prweb.com/releases/mergersandacquisitions/waltlipski/prweb11611814.htm
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