Shows
BizNexus RoundupGlobal M&A Trends and Risks 2025This source, "Global M&A trends and risks 2025," is a report compiled by Mergermarket on behalf of Norton Rose Fulbright, analyzing the mergers and acquisitions (M&A) landscape for 2025. It presents findings from a Q1 2025 survey of 200 senior executives regarding M&A trends, risks, and strategies, with a follow-up conducted after new US tariff announcements. The report examines various aspects, including deal drivers amidst tariff uncertainty, the impact of AI on digital transformation and M&A processes, financing conditions with a focus on private credit, a...
2025-08-0118 minBizNexus RoundupM&A mid year intelligenceThe provided texts from IT ExchangeNet offer an overview of the M&A landscape in the first half of 2025, emphasizing the resilience of the lower and middle markets amidst global volatility. They highlight private equity as a primary driver of deal flow, particularly through platform investments and add-on acquisitions, especially in IT services and digital marketing. A significant theme is the critical importance of demonstrable AI integration for commanding premium valuations, alongside the increasing use of creative deal structures and private credit to bridge valuation g...
2025-07-3016 minBizNexus RoundupLiquidity, AI and and Alpha in the lower middle marketThis Finquest perspective document, "PE in 2025: Liquidity, AI & Alpha in the Lower Mid-Market," outlines key insights for the private equity sector in the second half of 2025. It highlights the growing liquidity conundrum due to slow M&A activity and maturing 2021 deals, suggesting a wave of exits in 2026-2027. The document emphasizes Artificial Intelligence (AI) as a transformative force, driving productivity gains and leading to the "Rule of 70," where AI-ready firms outperform. It identifies the lower mid-market ($5M-$150M revenue) as an underserved sweet spot for "sustainable alpha," particularly in founder-led businesses r...
2025-07-2113 minBizNexus RoundupThe Rise of Private Equity Exits for VC-Backed Tech StartupsThe provided document, "The Journey from Venture Capital to Private Equity: The 2025 Guide for Tech Startups," is a report by Clipperton, a European M&A advisor for technology buyouts. It analyzes the growing trend of venture capital (VC)-backed companies being acquired by private equity (PE) firms, a shift from traditional IPOs or strategic mergers. The report explores the reasons behind this rise, highlighting how PE has become a compelling exit strategy due to its stability, flexibility, and the ability to foster continued growth. It outlines the characteristics PE funds seek in V...
2025-07-1625 minBizNexus RoundupThe McKinsey ReportThe provided text by Mckinsey and Company offers an overview of global private markets in 2024, highlighting their uneven recovery and resilience despite mixed conditions like tepid dealmaking and reduced fundraising. It notes a shift in focus from financial engineering to operational transformation and investors' increased allocation to private markets. The report examines specific asset classes, detailing the private equity sector's emergence with increased distributions and deal activity, real estate's partial rebound in deal value despite fundraising challenges, and private debt's continued stability and evolution
2025-07-1117 minBizNexus RoundupTax Structuring in M&A: The Silent Deal Maker (or Breaker)The source emphasizes that tax structuring and planning are critical to the success of Mergers & Acquisitions (M&A) deals, acting as a "silent deal maker or breaker." It explains why tax strategy is essential, covering potential consequences from deal structure to profit repatriation and the importance of minimizing risks while preserving value. The text also highlights various global tax laws and rules that influence M&A structuring, such as Double Tax Treaties and anti-avoidance rules, and outlines practical structuring methods like choosing between asset or share deals, f...
2025-07-0920 minBizNexus RoundupHow to Write a Letter of Intent for Business Acquisition that Actually ClosesThis document provides an in-depth guide to Letters of Intent (LOIs) for acquiring founder-owned businesses, emphasizing their crucial role in deal success. It outlines the strategic purpose of LOIs, such as validating feasibility and securing exclusivity, and details essential components like deal structure and purchase price. The text clarifies the distinction between binding and non-binding clauses, highlighting common pitfalls to avoid during the drafting process. Furthermore, it addresses key differences in LOI practices between the UK and US and offers advice on effectively presenting an LOI t...
2025-07-0419 minBizNexus RoundupWhat is buyer lead M&A?The provided text by Kison Patel introduces Buyer-Led M&A™, presenting it as a contemporary and adaptable strategy that empowers the buyer throughout the entire acquisition process. This approach is contrasted with traditional seller-led M&A, which is depicted as slow and advisor-driven. The document outlines five core pillars of Buyer-Led M&A™: emphasizing thoughtful sourcing with a clear thesis and cultural alignment, utilizing a unified platform for collaboration and data, initiating integration during diligence to accelerate value realization, building for scalability with repea...
2025-07-0207 minBizNexus Roundup2025 Consumer Health Quartly PerspectiveThis quarterly perspective from Lincoln International examines the consumer health sector in Q1 2025, highlighting recent mergers and acquisitions (M&A) activities and providing insights into public market trends. It discusses the potential impact of new reciprocal tariffs, particularly on ingredients imported from China and India, and how these tariffs could encourage domestic manufacturing and reshape supply chains. The report also presents data on leading categories within the vitamins, minerals, and supplements (VMS) and over-the-counter (OTC) markets, noting shifts in consumer preferences and largely flat performance i...
2025-06-1113 minBizNexus RoundupThe critical role of patent due diligence in M&AThis source by DrugPatentWatch.com describes patent due diligence as a critical step in mergers and acquisitions (M&A) for understanding the value and risks of intellectual property. It outlines the systematic review process involved, covering objectives like verifying ownership and assessing validity. TThe source details the stages of due diligence, from preparation and inventory to ownership verification, validity assessment, and Freedom-to-Operate (FTO) analysis. Finally, it touches upon risk mitigation, common challenges...
2025-06-0910 minBizNexus RoundupPacing for Success and M&AThis banking perspective explores the importance of speed in mergers and acquisitions (M&A) within the financial services sector. It highlights that while moving too slowly can damage deal value, integrating too rapidly can harm customer and employee experience. The document suggests that thoughtful planning and early decisions, especially regarding cultural integration, technology readiness, talent planning, and governance, are crucial for optimizing the pace of an M&A process. A case study is presented to illustrate how strategic choices can accelerate integration execution, ultimately contributing t...
2025-06-0611 minBizNexus RoundupTrump Tariffs & Their Impact on Lower Middle Market CapitalThis source by Nassau Street discusses the impact of Trump's tariffs on the lower middle market capital landscape, explaining the administration's rationale rooted in "America-First" trade policies and a desire to reindustrialize. It highlights the initial negative market reaction to the tariffs due to their surprising and broad implementation, leading to increased volatility. The source then details how the resulting uncertainty is prompting a shift in capital allocation, with private capital sources like high-net-worth individuals and family offices increasingly looking towards lower middle market c...
2025-06-0413 minBizNexus RoundupBuy-Side M&A Playbook for National Security and Critical ManufacturingThis buy-side M&A playbook offers practical guidance for companies looking to acquire private businesses in the national security and critical manufacturing sectors. It addresses the unique regulatory and operational challenges inherent in such transactions, covering topics like statutory compliance (CFIUS, FOCI, export controls), protection of sensitive data, and government contract requirements. The document emphasizes the critical importance of early legal counsel to navigate complex frameworks and mitigate risks. It also outlines the key stages of the acquisition process, from initial discussions and transaction s...
2025-05-2817 minBizNexus Roundup𝙈𝙀𝙍𝙂𝙀𝙍 𝘼𝙉𝘿 𝘼𝘾𝙌𝙐𝙄𝙎𝙄𝙏𝙄𝙊𝙉 (𝙈&𝘼) 𝙄𝙏 𝙋𝙍𝙊𝙅𝙀𝘾𝙏𝙎This document outlines key IT projects crucial for successful mergers and acquisitions (M&A), detailing the necessary steps for integrating or separating technology systems. It emphasizes the importance of initial IT due diligence and risk assessment to understand the existing landscape and potential challenges. The document then presents a structured roadmap covering areas like infrastructure integration, application consolidation, data migration, cybersecurity alignment, and transitioning IT support, all aimed at minimizing disruption and optimizing business value during these complex transitions. Finally, it highlights essential deliverables for a s...
2025-05-2614 minBizNexus RoundupUS Middle Market monitorThis collection of excerpts focuses on the US middle market's M&A and financing activity in 2024 and the outlook for 2025. Key themes covered include the decline in overall deal volume in 2024 but an improvement in the fourth quarter, particularly in the lower middle market, and a cautiously optimistic view for increased activity in 2025 driven by factors like significant private equity "dry powder" and supportive lending conditions. The sources also discuss valuation trends, noting overall stability in 2024 despite challenging conditions but variations across different industries
2025-05-2115 minBizNexus Roundup8 skills every M&A Manager should haveThe provided text, originating from graphitepartners.com, identifies eight crucial skills for effective M&A Managers based on feedback from clients who have hired them. These key competencies range from negotiation and stakeholder management to analytical abilities and leadership. The document also highlights the importance of project management, due diligence, attention to detail, and an entrepreneurial mindset for success in mergers and acquisitions. Finally, it includes contact information for Corin Tweed at Graphite Partners for those interested in M&A Manager or Corporate Development opportunities.Check out t...
2025-05-1909 minBizNexus Roundup"Technology" and Lower Middle Market purchase pricesBrent Mathews' article from February 2025 discusses the impact of technology, particularly AI and readily available coding resources, on acquisition prices in the lower middle market. Mathews, drawing on fifteen years of experience in acquisition financing, observes that buyers are increasingly projecting significant revenue and EBITDA growth based on planned technology implementations. He questions whether buyers with technological expertise will inflate the prices of companies with outdated systems and lower margins. The article also considers how traditional "value" investors might adapt to this changing landscape. Mathews reflects on the historical challenges and unpredictability of implementing technological c...
2025-05-1408 minBizNexus RoundupShould Emerging Managers Chase HNWs?A recent article explores the growing trend of high-net-worth individuals (HNWs) becoming potential investors for emerging fund managers. Fundraising experts suggest that while lower mid-market firms currently rely on traditional institutional investors and placement agents, HNW capital is becoming increasingly accessible. This expansion is facilitated by new alternative retail structures and innovative fund structures that address liquidity concerns. Industry professionals anticipate this trend to continue, offering a stable, non-traditional source of capital for smaller and newer private equity firms.Check out that full article here: https://www.themiddlemarket.com/news-analysis/should-emerging-managers-chase-hnwsDISCLAIMER: The Bi...
2025-05-1206 minBizNexus RoundupWhat Does It Take to Raise a First-Time Fund? Expert perspectives.Launching a first-time private equity fund presents ongoing challenges, yet increasing capital pools focused on emerging managers offer opportunities for those with strong track records. Investors prioritize demonstrable prior deal success and cohesive teams, often favoring managers specializing in the middle and lower-middle markets. The lower middle-market is particularly attractive due to abundant deal flow and the potential for significant growth. While the fundraising environment is complex, anticipated increased liquidity and a focus on sectors like technology and healthcare suggest a favorable outlook for well-positioned new funds, especially towards the end of 2025.About BizNexus
2025-05-0718 minBizNexus RoundupPE Weekly: Tech-Enabled Services Continue M&A DrivePE Weekly reports on mergers and acquisitions within the tech-enabled services sector as the first quarter nears its end, highlighting investor interest across diverse areas like higher education, aerospace and defense, and financial consulting. The publication details various platform investments, add-on acquisitions, and exit strategies undertaken by private equity firms. Additionally, the source covers recent fundraising activities by investment firms and provides insights into M&A trends and notable deals, including Walgreens' potential privatization.Check that out here: https://middlemarketgrowth.org/pe-weekly-tech-enabled-business-services/DISCLAIMER: Th...
2025-05-0517 minBizNexus RoundupWhat Does It Take to Raise a First-Time Fund? Expert perspectives.Launching a first-time private equity fund presents ongoing challenges, yet increasing capital pools focused on emerging managers offer opportunities for those with strong track records. Investors prioritize demonstrable prior deal success and cohesive teams, often favoring managers specializing in the middle and lower-middle markets. The lower middle-market is particularly attractive due to abundant deal flow and the potential for significant growth. According to the Middle Market Dot Com, while the fundraising environment is complex, anticipated increased liquidity and a focus on sectors like technology and healthcare suggest a favorable outlook for well-positioned new funds, especially towards the e...
2025-05-0218 minBizNexus RoundupThe Lower Middle Market Advantage: How Smaller Deals Can Deliver Big ReturnsPatrick Galleher's Forbes Finance Council article argues that the lower middle market, characterized by M&A deals between $10 million and $500 million, presents significant investment advantages often overlooked in favor of larger transactions. These smaller companies offer agility, allowing them to adapt quickly to market changes, and frequently operate within specialized niches, providing a competitive edge. Furthermore, the lower middle market facilitates "buy-and-build" strategies, where a platform company is acquired and then strategically expanded with additional acquisitions, ultimately yielding compelling returns for investors.
2025-04-2815 minBizNexus RoundupLower Middle Market Direct Lending: A Resilient Opportunity Sparking Allocator InterestLower middle market direct lending is presented as an increasingly appealing investment strategy within private credit. This sector is attracting interest due to its potential for attractive returns with lower leverage, simpler debt structures, and stronger lender protections compared to the upper middle market. The article highlights that the lower middle market demonstrated resilience through recent economic challenges and anticipates continued deal volume growth. Investors are advised to prioritize experienced managers and understand the nuances of this market, which offers a potentially favorable risk-return profile and has shown h...
2025-04-2815 minBizNexus RoundupMiddle-Market Firms Wary of Smaller AI-Driven RivalsMiddle-market companies, particularly those in service industries, are increasingly concerned about competition from smaller, agile startups. These smaller firms often leverage artificial intelligence for operational improvements and innovative strategies. While large corporations remain a significant competitive force, the threat posed by startups has seen a notable increase in recent months. Consequently, innovation and the adoption of technology are becoming crucial for middle-market businesses to effectively compete and reduce uncertainty in the evolving marketplace. To stay ahead, these established companies are recognizing the need to prioritize technological advancements in their c...
2025-04-2507 minBizNexus RoundupMergers & Acquisitions (M&A) Explained: How Companies Grow, Compete & DominateThis outlines the motivations behind M&A, such as reducing competition, acquiring technology and talent, and achieving faster growth through cost reduction. Successful examples like Disney/Marvel, Google/Android, and Apple/Beats are highlighted alongside unsuccessful ventures like AOL/Time Warner and eBay/Skype to illustrate potential pitfalls. The text also briefly touches upon the stages of an M&A deal, emphasizing that successful integration is the most critical aspect.About Sahil: Finance student pursuing the CFA designation with a hands-on approach to investing and business. Passionate ab...
2025-04-2109 minBizNexus RoundupSmall Business Administration Announces Agency-Wide ReorganizationThe Small Business Administration (SBA) has announced a significant agency-wide reorganization, driven by Executive Order 14210, with the stated goals of eliminating wasteful spending, restoring the agency's core mission of empowering small businesses, and improving accountability to taxpayers. The reorganization will involve a substantial workforce reduction of 43%, a return to pre-pandemic staffing levels and operational focus, and a strategic realignment of resources towards core functions like capital access, disaster relief, and support for veteran-owned businesses and American manufacturing. The announcement explicitly frames the reorganization as a reversal of the "expansive social policy agenda" and "partisan programs" of...
2025-04-1614 minBizNexus RoundupSBA HistoryThe SBA 7(a) loan program has undergone significant transformations over the past two decades, adapting to technological advancements, economic crises, and evolving policy priorities. While recent changes aimed at simplification and accessibility show promising early results, the program faces potential challenges related to its zero-subsidy funding model and rising default rates. The future trajectory of the SBA 7(a) program remains uncertain, with stakeholders closely watching how these factors will shape its evolution and its ability to continue serving as a vital source of capital for small businesses. The concerns raised by Sterling Birdsong underscore the importance of e...
2025-04-0913 minBizNexus RoundupAccording to Forbes- Individual Business Buyers Are Flooding The MarketAccording to Forbes, an increasing number of individual buyers are entering the business acquisition market, yet the supply of quality businesses for sale has not kept pace. Despite heightened demand, median sale prices have only modestly increased, partly because the anticipated wave of Baby Boomer-owned businesses hasn't fully materialized. Social media trends promoting unrealistic acquisition strategies and the rise of inexperienced individuals mislabeling themselves as "Searchers" contribute to confusion and inefficiency. Furthermore, securing financing remains challenging for many individual buyers, and online communities of novice buyers often lack helpful ex...
2025-04-0817 minBizNexus RoundupThe LMM Is RAINING Zero-Money Down Acquisition Gurus... What to think?Key Ideas and Facts:The AI breaks down a recent LinkedIn post by Ben Kelly (and the comments) about his zero-money down business acquisition process.Background: Ben Kelly acquired three businesses (SaaS, Nail Salon, and Web Design) while working as a W-2 employee. He claims to spend only 2 hours per week on one of them, and none on the other two.SaaS Company: Revenue - $1,318,163, Cash Flow - $150,000, Weekly Effort - 2 hoursNail Salon: Revenue - $1,124,889, Cash Flow - $30,000, Weekly Effort - NoneWeb Design Company: Revenue - $256,667, Cash Flow - $10,000, Weekly Effort...
2025-04-0417 minBizNexus RoundupM&A Market Outlook from RKCARKCA, an investment bank focused on privately-held lower middle market businesses, presents its outlook for the 2025 M&A market. The firm anticipates a strong year driven by significant private equity dry powder and increasing activity from family offices and individual investors. While senior lenders are cautious and the cost of capital has risen, "quality" companies with strong financials, documented processes, experienced management, and resilience will command premium valuations. RKCA advises business owners considering a sale to begin preparation early, emphasizing that a proactive and well-managed process yields the best results. Th...
2025-04-0216 minBizNexus RoundupTaking a look inside Bruce Mark's Transaction Brain - LinkedInSBA Financing for Partial AcquisitionsThis post explores using SBA 7(a) loans to acquire 88% of a company, with the seller retaining a minority stake. Bruce Marks states, "So there you have it, a stock sale for the purchase of 88% of an existing business, funded by an SBA Loan," demonstrating its feasibility.Synergistic AcquisitionThe deal aims to create a stronger combined business through:Operational Synergies: Cost savings and process efficienciesStrategic Synergies: Market expansion and competitive positioningFinancial Synergies: Improved profitability and cash flowDeal...
2025-03-3112 minBizNexus RoundupA conversation about email deliverability - Brigitta Ruha on LinkedinMain Themes and Ideas:Deliverability is Paramount: The central theme is that landing in the inbox is the most crucial factor for successful email campaigns. As Ruha states, "You can’t get responses if you don’t land in the inbox." A significant portion of success (50%) depends on deliverability.Technical Setup (SPF, DKIM, DMARC): Proper configuration of SPF, DKIM, and DMARC is critical. Ruha emphasizes that "50% of your deliverability success depends on setting up SPF, DKIM, and DMARC." In 2025, tools like Maildoso are suggested to simplify this process, automating setup of technical conf...
2025-03-2811 minBizNexus Roundup"No-Money Down Stupidity" - Mike Finger on LinkedInKey Ideas and Facts:Critique of "No Money Down" Sales Pitches: Finger criticizes the proliferation of ads and programs that promote buying businesses with "little to no money down," calling it "stupidity." He warns aspiring buyers to avoid anyone pushing this paradigm. "Do not trust anyone who pitches you on how to buy a business without using your own money."Prediction of Peak: Finger predicts that 2024 will be seen as the "high-point of buy-a-business for no money down stupidity." He suggests that those susceptible to these pitches have likely already been targeted...
2025-03-2614 minBizNexus RoundupIs dry powder really a thing? Charlotte Ashton on LinkedInKey Themes and Findings:Definition of Dry Powder: The document defines "dry powder" as the "Value of PE funds raised but not yet invested."Significant Volume of Dry Powder: Pitchbook data indicates that at the end of Q1 2024, dry powder in Europe was €300 billion.Middle Market Focus: Approximately 50% of the funds raised fall into the "middle market" category (£100m to £5bn funds), translating to roughly £150 billion that "𝗵𝗮𝘃𝗲 to be invested within a 5 year window."Recent Investment Restraint: The "increased cost of debt and reduced valuations" in 2023-2024 forced investors to hold...
2025-03-2405 minBizNexus RoundupLinkedIn Deal Origination 101: How to start a conversation through DMsKey Takeaways:Cold Email ≠ LinkedIn DM: The fundamental premise. As stated directly, "Cold Email ≠ LinkedIn DM (even great emails will look bad in DMs)."Brevity and Punchiness: DMs should be short, concise, and feel like a text message. "Got to be punchy and short," advises the pasted text source. The PDF excerpt recommends "3-4 sentences max."Relevance is Paramount: DMs should immediately address the prospect's needs or interests. Lead with value first always. Show what problem you can help your prospect solve right now.Avoid Assumptions and Vague Openings: G...
2025-03-2110 minBizNexus RoundupThe AI Agent that will win the private equity raceThe source discusses the development and implementation of AI agents in private equity firms, focusing on how these agents can aid in due diligence and save time for associates. It highlights compliance concerns related to using public LLMs, suggesting the development of internal versions as a solution. The text points out a significant opportunity in the lower-middle market, as these firms are more cost-sensitive and could benefit from AI solutions. Emphasis is placed on the need for high-quality and customized AI agents that can leverage a fund's existing work a...
2025-03-0312 minBizNexus RoundupExecutive Alignment in M&ARowland Chen's document from February 2025 highlights the critical need for executive alignment in acquisition integrations. It points out that a large percentage of acquisitions fail, costing trillions of dollars, due to issues like inadequate planning, poor cultural integration, and unrealized synergies. To combat this, the document advocates for early and frequent executive workshops focused on achieving agreements on key aspects of the acquisition. These workshops aim to provide a consistent vision, accelerate integration, and enable faster execution. The Silicon Valley Laboratory (TSVL) offers tools and frameworks to facilitate this alignment, with the goal of...
2025-02-2619 minBizNexus RoundupMergers, Acquisitions & DivesturesThis document from Delta Publishing Company serves as a comprehensive guide to mergers, acquisitions, and divestitures. It covers key aspects of M&A transactions, such as due diligence, valuation methods, financing options, and SEC filing requirements. The guide also addresses the advantages and disadvantages of mergers, different merger types, and strategies for planning and integrating acquisitions. Furthermore, the document explores divestitures, outlining objectives, reasons for selling, valuation techniques, and accounting considerations. Lastly, it discusses hostile takeover bids, defensive measures, and the increasing role of corporate development officers.A...
2025-02-2415 minBizNexus RoundupAn Institutional Approach to Investing in the Lower Middle MarketArgosy Real Estate Partners specializes in real estate investments within the lower middle market, focusing on opportunistic, value-added, and core-plus strategies across various property types like multifamily and industrial. The company operates as a diversified allocator fund, partnering with experienced operators to create value through acquisition, repositioning, and development. Argosy targets investments between $5 million and $25 million, adjusting its focus based on market opportunities and growth prospects within the top MSAs in the United States. Their investment philosophy emphasizes acquiring assets at competitive costs, mitigating risk, creating value at the asset level, and providing m...
2025-02-2116 minBizNexus RoundupStrategies for cultural IntegrationMarci Caudle's guide outlines a seven-step process for cultural integration within a company. First, identify core cultural elements; second, assess compatibility and divergence between cultures; third, design a blended culture; fourth, develop transition plans; fifth, monitor and adjust the implementation; sixth, celebrate milestones; and seventh, maintain transparent communication. The process emphasizes HR's role in facilitating a smooth and successful cultural merge. Ultimately, the goal is to create an effective and inclusive, unified company culture.About X...
2025-02-1218 minBizNexus RoundupIntrepid 2025 M&A OutlookThis market outlook report from Intrepid Investment Bankers analyzes five key factors influencing capital raising in 2025. Lower middle-market M&A activity is expected to increase, driven by pent-up demand. Lenders are adapting their strategies, employing creative financing solutions due to decreased LBO opportunities. Increased competition compresses credit spreads, benefiting pristine businesses but requiring concessions from others. The Federal Reserve's anticipated slower rate easing will affect borrowing costs. Finally, leverage multiples are rising, though lenders remain focused on cash flow and liquidity.About...
2025-02-1018 minBizNexus RoundupM&A GuidebookThis PwC guide focuses on mergers and acquisitions (M&A), emphasizing the crucial role of supervisory boards in successful transactions. It examines M&A strategies, the acquisition and divestiture processes, public offers, post-deal integration, and the development of internal M&A capabilities. The guide highlights factors contributing to M&A success and failure, offering practical advice for supervisory boards to mitigate risks and maximize value creation. A significant portion is dedicated to outlining the supervisory board's responsibilities at each stage of the M&A process, including deal approval, due diligence oversight, and post-merger integration monitoring. Ultimately, the t...
2025-02-0328 minBizNexus RoundupDifferentiated Private Credit ExposureThis document presents a discussion by two Crescent Capital managing directors on the lower-middle market segment of direct private lending. They highlight this niche's advantages, including less competition, higher yields, and lower default rates compared to the upper-middle market. The discussion emphasizes the importance of long-term relationships with private equity sponsors and the benefits of a disciplined credit approach. The authors also address risks and mitigating factors, focusing on the need for experienced lenders with strong portfolio monitoring capabilities and scale to grow with portfolio companies. Finally, the document provides an overview of Crescent Capital's investment strategy...
2025-01-3117 minBizNexus RoundupWhat does 2025 have in store for the app industry?Experts at Business of Apps predict key trends shaping the mobile app market in 2025. These include the rise of AI, impacting personalization, advertising, and app functionality; diversification of user acquisition strategies due to increasing competition and stricter privacy regulations; a shift in app store dynamics, with mobile carriers potentially playing a larger role; and the growing importance of brand building to stand out in a saturated market. Generative Engine Optimization and hyper-personalization are also highlighted as significant developments. Finally, the enduring need for...
2025-01-2912 minBizNexus RoundupA blueprint for M&A successThis McKinsey article advocates for a strategic approach to mergers and acquisitions (M&A), emphasizing programmatic M&A for long-term value creation and resilience. It highlights the importance of an "M&A blueprint," a structured plan outlining the "why," "where," and "how" of acquisitions, aligning deals with overarching corporate strategy. The blueprint involves self and market assessments, defining clear M&A themes and criteria, and developing detailed integration plans. A case study illustrates the pitfalls of unplanned M&A, emphasizing the need for a well-defined blueprint to avoid wasted resources and achieve strategic goals. Ultimately, a robust...
2025-01-2718 minBizNexus RoundupLower Middle Market Private Credit – A Golden VintageThis document from Muzinich & Co. analyzes the impact of the current US banking crisis on lower middle-market businesses. Reduced bank lending, due to concerns about commercial real estate loans and deposit stability, is creating a capital vacuum. This presents a significant opportunity for private credit investors, as these businesses still exhibit strong fundamentals and a need for growth capital. The analysis uses data from the Federal Reserve and other sources to support the claim that private credit could experience a "golden vintage." The report highlights the disproportionate impact on smaller banks...
2025-01-2416 minBizNexus RoundupThe Advantages of Disciplined Lower Middle Market Direct LendingThis analysis of direct lending markets by Trevor Clark of Twin Brook Capital Partners shows that the Lower Middle Market (LMM) consistently offers higher spreads and stronger lender protections than the Core Middle Market (CMM) and Upper Middle Market (UMM). Larger borrowers in the LMM pay less, yet experienced lenders can find stable cashflow comparable to UMM companies. Furthermore, LMM has lower leverage and less risk, with more common loan covenants than UMM. Finally, UMM BDC portfolios show a significant degree of overlap, reducing diversification benefits.About Trevor ClarkManaging Partner at Twin...
2025-01-2218 minBizNexus RoundupIntroduction to M&A Valuation by KPMGThis KPMG Cambodia Ltd. presentation provides an introduction to mergers and acquisitions (M&A) and valuation. It covers the reasons for M&A, including synergies and eliminating competition, different types of mergers, and the M&A process from both the buyer's and seller's perspectives. The presentation also details various valuation methods, such as market, income, and asset-based approaches, emphasizing their applications and potential pitfalls. Finally, it highlights the importance of thorough preparation and due diligence in successful M&A transactions.About AlejandroCoFounder at Panthera Advisors...
2025-01-2020 minBizNexus RoundupWhen should private equity portfolio companies hire corporate development leaders?This is an excerpt from a document from Charles Aris, a recruitment firm. It highlights the importance of strategic timing when hiring a corporate development leader.The excerpt emphasizes that well-timed hires contribute to better alignment with company growth goals and improved overall success. About Charles ArisAn executive search firm that strives to change lives, transform businesses, and enrich communities around the globe.https://www.linkedin.com/company/charles-aris-inc-/posts/Read that full article here:https://www.linkedin.com/posts/charles-aris-inc-_when-should-pe-portfolio-companies-hire-corpdev-activity-7283143444930134017-E7uy?utm_source...
2025-01-1807 minBizNexus RoundupPrivate Debt in the Lower Middle MarketThis report from Brightside Partners argues that lower middle market private debt presents attractive investment opportunities. Key advantages highlighted include strong covenants and protections leading to lower default and higher recovery rates, attractive yields at first lien positions, and high selectivity due to a large underserved market. The report by Stephen Beauchamp cites data from various sources, such as Proskauer and Fitch Ratings, to support its claims of low default rates and high potential returns. Despite recent market slowdowns, Brightside Partners remains optimistic about future growth in this sector. The report...
2025-01-1514 minBizNexus Roundup2025 M&A OutlookGoldman Sachs' 2025 M&A Outlook report predicts a surge in mergers and acquisitions driven by several factors. Increased CEO confidence, stemming from clearer monetary policy and regulatory environments, will fuel corporate dealmaking. Corporate simplification, including spin-offs and divestitures, will continue, alongside a rise in capability-enhancing acquisitions, particularly in the technology sector. Private equity sponsors, facing pressure to deploy capital, will increase activity, including take-private transactions. Finally, the burgeoning artificial intelligence sector is expected to significantly drive M&A activity across infrastructure, platform, and application layers.
2025-01-1312 minBizNexus RoundupHow M&A Advisors Can Use a Tax Strategist To Win More Deals with Bob FarissMain Street business brokers are evolving to meet the demands of the Lower Middle Market, which involves larger and more complex deals than previously handled. This shift requires enhanced buyer outreach strategies, moving beyond simple online listings to utilize networks like BizNexus to identify qualified buyers with available capital. Furthermore, sophisticated deal structuring necessitates expertise in tax implications and after-tax consequences of various deal terms, requiring a team-based approach with tax advisors to effectively serve clients and secure engagements. The need for comprehensive valuation and tax...
2025-01-1023 minBizNexus RoundupQ3 2024 Market Update: Business Transactions in the $1–5 Million RangeThis text by Calder comprises several market updates on mergers and acquisitions (M&A) activity in 2024, categorized by business transaction value (under $1 million, $1–5 million, $5–10 million, $10–25 million, $25–50 million, and $50–100 million). The reports analyze market trends, valuations (using EBITDA and SDE multiples), deal structures (financing, earnouts), buyer dynamics (private equity, strategic, and entrepreneurial buyers), and the impact of macroeconomic factors and the 2024 election. Specific industry sectors examined include manufacturing, construction, distribution, and business services. The reports also highlight the importance of seller preparation and exit planning for maximizing transaction success, emphasizing the services offered by Calder Capital and its sister compan...
2025-01-0819 minBizNexus RoundupAgency Risk in the Lower Middle Market: A Guide for PE ProfessionalsThis CFA Institute article examines agency risk in lower middle market private equity (PE) deals. Agency risk arises from conflicts of interest, primarily involving underqualified business brokers who often act as both marketers and financial/legal advisors to inexperienced sellers. The article highlights three key sub-categories of this risk: anchoring, bad advice, and telephone negotiations. Mitigation strategies are proposed, emphasizing open communication with brokers, encouraging sellers to seek professional counsel, and negotiating directly with principals. The ultimate goal is to facilitate smoother transactions by addressing the inherent challenges of...
2025-01-0715 minBizNexus RoundupPrivate Equity 2025 Outlook: Soft landings into dry powderSchroders, a global investment management company, offers a wide range of investment products and services, including private assets, equities, fixed income, and sustainable investing options. They provide various investment funds and strategies tailored to diverse investor needs. The company also shares market insights and outlooks through publications and media. Their website features information about the company, contact details, and important legal documents. Finally, Schroders emphasizes transparency and responsible investing practices.Uncover the full details here:https://www.schroders.com/en-lu/lu/individual/insights/private-equity-2025...
2025-01-0609 minBizNexus RoundupGlobal Investment Outlook 2025Northern Trust Asset Management's 2025 Global Investment Outlook report analyzes the global economic landscape and offers investment strategies across various asset classes. The report examines the U.S., European, and Asian economies, predicting a soft landing for the U.S. but highlighting uncertainties for China and Europe. Equity market analysis focuses on U.S. large and small-cap stocks, developed ex-U.S. equities, and emerging markets, considering factors like earnings growth and valuations. Fixed income analysis covers U.S. money markets, TIPS, investment-grade bonds, and high-yield bonds, assessing interest rate expectations and inflation. Finally, the report explores alternative investments...
2025-01-0426 minBizNexus Roundup95% of Middle-Market CFOs Say They’re Unprepared for Future Regulatory ShiftsA PYMNTS Intelligence report reveals that 95% of middle-market CFOs feel unprepared for upcoming regulatory changes, particularly those in smaller firms. Increased compliance costs, legal risks, and operational disruptions are significant concerns, forcing many to rely on external partners for compliance, hindering long-term investments. Smaller companies experience significantly higher regulatory uncertainty compared to larger ones, struggling with resource allocation for compliance tasks such as non-financial reporting. This ultimately impacts their ability to remain competitive and invest in future growth.Read that full article here:https://www.pymnts.com/cfo/2024/95...
2025-01-0308 minBizNexus RoundupThe Unseen Impact: How the Great Wealth Transfer Will Shape Lower-Middle Market M&AThe RedlineDCS article discusses the "Great Wealth Transfer," the massive inheritance of $84.4 trillion from Baby Boomers to younger generations over the next two decades. This transfer will significantly impact the lower-middle market mergers and acquisitions (M&A) sector, leading to increased M&A activity as Baby Boomers sell their small and medium-sized businesses (SMBs). The article highlights the need for robust succession planning within SMBs and explores the investment opportunities this wealth transfer creates. Ultimately, this generational shift in wealth is predicted to stimulate economic growth and reshape the business landscape.Explore that full report...
2025-01-0217 minBizNexus RoundupSeven Ways Family Offices are Different from Other Buyers of Lower Middle Market CompaniesThis article from Akoya Capital discusses seven key differences between family offices and other investors in lower middle-market companies. Family offices possess a longer-term investment horizon, often stemming from their unique family wealth creation experiences. Their internal structures are diverse and complex, reflecting varied family member goals and needs. Investment strategies vary widely, sometimes favoring industries connected to the family's original wealth and other times prioritizing diversification. Active involvement in portfolio companies is common, alongside a desire to minimize fees. However, access to suitable deals can...
2025-01-0118 minBizNexus RoundupStrategies for the Family Office Contemplating Direct InvestmentsThis McGuireWoods article advises single-family offices (SFOs) considering direct private equity-style investments. It emphasizes five key strategies: partnering with experienced independent sponsors to access deal flow; prioritizing deal sourcing and adhering to investment criteria; considering co-investing with experienced partners to learn and mitigate risk; leveraging existing industry knowledge; and hiring expert advisors across various fields for due diligence and beyond. The article highlights the challenges and complexities of direct investing for SFOs and offers practical solutions to navigate these hurdles successfully. It features advice from several industry professionals.Explore that full report here:...
2024-12-3122 minBizNexus RoundupAre Family Offices Different from Other Buyers of Middle Market Companies?This article from Generational Equity discusses the increasing importance of family offices as buyers of middle-market companies. Family offices differ from other buyers due to their longer investment horizons and their active involvement in portfolio companies. Unlike private equity firms, family offices often seek to hold investments indefinitely and contribute operational expertise. However, access to suitable deals can be challenging for family offices, a problem Generational Equity aims to solve with its extensive network of buyers. The article highlights Generational Equity's services in connecting business owners with suitable family office buyers....
2024-12-3016 minBizNexus RoundupWhen structuring a deal, family offices invest for long-term valueThis PwC report analyzes the mergers and acquisitions (M&A) activities of US family offices. Family offices are increasingly investing in smaller, growth-oriented companies, particularly in technology, biotechnology, and TMT sectors, shifting away from traditional real estate investments. The report highlights the complexities of these deals, including tax, regulatory, and cybersecurity considerations, especially in cross-border transactions. Recommendations emphasize the need for flexibility, adaptability, and robust governance structures to navigate these challenges and achieve long-term investment success. PwC underscores the importance of due diligence and strategic partnerships in this evolving M&A...
2024-12-2923 minBizNexus RoundupHow Lower Middle-Market Private Equity Firms Streamline Operations of Their Portfolio CompaniesThis blog post from Raincatcher, a firm advising on mergers and acquisitions, explains how private equity firms operate and boost portfolio company growth. Private equity firms invest in and manage privately held companies, aiming for high returns through operational streamlining, revenue growth, and strategic acquisitions. They are compensated via management and performance fees. Key strategies include digital transformation, improved sales, and operational efficiencies achieved by synergizing operations, carving off underperforming divisions, and cross-selling products/services. The post concludes by advising small business owners to adopt a shareholder mindset and implement similar strategies for...
2024-12-2831 minBizNexus RoundupAdd-Backs To EBITDA Can Substantially Increase Business ValuationsThis article from BMI Mergers & Acquisitions explains how to calculate adjusted EBITDA to increase business valuations. Adjusted EBITDA, a key metric for valuing businesses, "normalizes" income and expenses to reflect a buyer's expectations. The article details common add-backs to EBITDA, such as owner compensation, rent, and personal expenses, as well as those typically rejected by buyers. It emphasizes that accurately calculating adjusted EBITDA, often with the help of an M&A professional, significantly impacts a company's valuation by increasing or decreasing the final sales price based on a multiple of the adjusted EBITDA...
2024-12-2726 minBizNexus RoundupUnderstanding Add-Backs When Selling a BusinessThis blog post from Business Appraisal FL|GA|HI explains "add-backs" in business valuations. Add-backs are adjustments made to a company's earnings (EBITDA) to reflect expenses a new owner wouldn't incur, like owner's personal expenses or non-recurring costs. The article details various types of add-backs, their impact on valuation, and best practices for their use. It emphasizes that accurate add-backs are crucial for increasing a business's sale price but cautions against misrepresenting profits. The firm offers its services in business appraisal and valuation, assisting business owners in preparing for a sale.Check out t...
2024-12-2617 minBizNexus RoundupTypical Terms and Conditions in Seller Note AgreementsThe provided text comprehensively explains seller notes in mergers and acquisitions (M&A). Seller notes are financing arrangements where the seller acts as a lender, receiving part of the purchase price over time. The text details key terms like interest rates and repayment schedules, emphasizing the importance of negotiation and legal considerations. It highlights the benefits for both buyers and sellers, including increased flexibility and potentially higher sale prices. Finally, it stresses the significance of understanding market conditions and seeking professional advice for successful M&A transactions involving seller notes.
2024-12-2519 minBizNexus RoundupLower Middle Market Direct LendingThis monroe capital article provides a strategic guide to sourcing deals in the lower middle market (LMM) for 2025. It highlights the opportunities presented by the LMM, including a large pool of capital seeking smaller investments and business owners looking for exit strategies. The article also addresses key challenges like market fragmentation and limited data visibility, emphasizing the need for sophisticated strategies. Solutions discussed include leveraging new technologies like AI-powered platforms, developing proprietary networks, and implementing systematic outreach programs. Ultimately, the piece advocates for a balanced...
2024-12-2419 minBizNexus RoundupLower Middle Market Deal Sourcing: A Strategic Guide for 2025This Biznexus article provides a strategic guide to sourcing deals in the lower middle market (LMM) for 2025. It highlights the opportunities presented by the LMM, including a large pool of capital seeking smaller investments and business owners looking for exit strategies. The article also addresses key challenges like market fragmentation and limited data visibility, emphasizing the need for sophisticated strategies. Solutions discussed include leveraging new technologies like AI-powered platforms, developing proprietary networks, and implementing systematic outreach programs. Ultimately, the piece advocates for a balanced approach...
2024-12-2319 minBizNexus RoundupThe New M&A Landscape: Proprietary Deal Flow and Platform Acquisitions in the Lower Middle MarketThis article by reag examines the current mergers and acquisitions (M&A) landscape in the lower middle market, focusing on the impact of recent interest rate cuts. It highlights the increasing importance of proprietary deal flow—accessing deals before competitors—in securing favorable acquisitions. The article emphasizes the resurgence of platform acquisitions, a strategy where a core business is acquired and then expanded through add-on acquisitions, and details the characteristics of successful platform companies. Finally, it stresses the need for adaptable strategies, expert partnerships, and leveraging proprietary deal flow to navigate the dynamic M&A environment.U...
2024-12-2216 minBizNexus RoundupProprietary Deal Flow: What Is It, What Are the Challenges, and How Do You Overcome Them?This grata blog post discusses strategies for private equity (PE) firms to improve their proprietary deal flow, focusing on proactive business development. It highlights the importance of proprietary deals for higher returns and competitive advantage, emphasizing the need to move beyond relying solely on personal connections and intermediaries. The article examines several channels for sourcing deals, including direct outreach to executives, collaboration with bankers and advisors, and leveraging relationships with other investors. Finally, it promotes Grata, a technology platform designed to streamline the entire process, from sourcing and managing deals to analyzing market data and leveraging CRM...
2024-12-2115 minBizNexus RoundupHow Do Middle-Market PE Firms Source Deals?This Sourcescrub article examines how middle-market private equity (PE) firms, focusing on companies valued between $50 and $500 million, source deals. It highlights the advantages of this market segment, including a higher volume of potential acquisitions compared to larger enterprises. The text then details various deal sourcing strategies, encompassing traditional methods like networking and conferences, as well as modern approaches such as online platforms and utilizing deal origination services. The importance of developing a strong investment thesis and adapting to market conditions is also stressed. Finally, the article emphasizes the role of...
2024-12-2015 minBizNexus RoundupLower Middle Market Deal Sourcing: A Strategic Guide for 2025This Biznexus article provides a strategic guide for sourcing deals in the lower middle market (LMM) for 2025. It highlights the significant opportunities presented by the LMM, including a large pool of private equity capital and business owners seeking transitions. Key challenges in LMM deal sourcing are discussed, such as market fragmentation, limited visibility of potential targets, and complex seller dynamics. The article emphasizes the importance of leveraging new technologies like AI-powered platforms, developing proprietary networks (especially on LinkedIn), and creating systematic outreach programs. Finally, it presents best practices for 2025, focusing on...
2024-12-1911 minBizNexus RoundupCalSTRS Private Equity Portfolio Performance (2024)This document presents the performance of CalSTRS' private equity portfolio as of June 30, 2024. Data includes capital committed, contributed, distributed, and market value for numerous limited partnerships. A key metric is the internal rate of return (IRR), though the report cautions that IRR figures, especially those from early partnership years, are interim estimates and not directly comparable across investments due to variations in calculation methodologies and industry-standard reporting practices. The report highlights the complexities involved in calculating and comparing private equity returns. Several factors can impact the IRR calculation.Explore that full...
2024-12-1614 minBizNexus RoundupM&A Industry Trends & Outlook 2025DFIN's report analyzes mergers and acquisitions (M&A) industry trends and provides a 2025 outlook. The report notes a recent decline in M&A activity in 2024, primarily due to high interest rates and global economic uncertainty. However, it predicts a rise in M&A activity in 2025, driven by factors such as decreasing interest rates, increased private equity investment, and the need for digital transformation. Specific sectors expected to see growth include technology, healthcare, energy, and automotive. The report also highlights the increasing role of AI in M&A processes and...
2024-12-1544 minBizNexus RoundupDeloitte’s corporate development survey, fifth editionThis report, based on Deloitte's fifth annual corporate development survey of 357 professionals, examines the evolving landscape of mergers and acquisitions (M&A). It highlights the increasing importance of innovation in M&A strategies, emphasizing the need for corporate development teams to adapt to a rapidly changing business ecosystem. The report explores challenges such as deal origination, shareholder activism, and effective investor relations, offering insights and recommendations for navigating these complexities. Key themes include fostering partnerships, managing risk in innovative deals, and building a strong corporate reputation to attract desirable targets. The report also features interviews with industry...
2024-12-1415 minBizNexus RoundupStrategic Deal Sourcing for Family OfficesThis McCombie Group white paper outlines strategic deal sourcing for family offices, emphasizing the importance of securing proprietary deal flow to maximize returns. It argues that family offices possess unique advantages over institutional investors, particularly in smaller deals or those with unconventional structures. The paper suggests treating business owners as valued customers, building relationships based on trust and mutual respect to achieve win-win outcomes. Finally, it explores various deal structures and proposes utilizing a consultative selling approach to identify and secure attractive investment opportunities.Read that report yourself here: https://www.mccombiegroup.com/strategic-deal-sourcing/
2024-12-1315 minBizNexus RoundupM&A: A critical tool for growthThis document from Deloitte offers a comprehensive guide to mergers and acquisitions (M&A), focusing on strategies for maximizing value creation. It explores building an advantaged portfolio, emphasizing strategic soundness, value creation through multiple lenses (intrinsic, market, and optimal ownership), and resilience. The text also examines common M&A pitfalls, particularly during merger waves, and proposes a disciplined approach to becoming an advantaged acquirer. Finally, it highlights the unique opportunities presented by economic downturns for strategic acquisitions and details a synergy-capture due diligence process to improve deal outcomes.Explore the full report here:h...
2024-12-1215 minBizNexus RoundupWhat are the advantages of buying an existing business?This guide from Rockland Trust offers comprehensive advice on purchasing an existing business. It details the advantages and disadvantages of such acquisitions, emphasizing factors like goodwill and potential liabilities. The guide thoroughly explains the pre-purchase steps, including business valuation methods (asset, income, and market comparison approaches), and the process of structuring the purchase (stock versus asset). Finally, it covers negotiating the deal, assembling a team of professionals, documenting agreements, and preparing a business plan. Crucially, the guide stresses seeking professional advice throughout the process, especially regarding legal and financial matters.Dive into the full article h...
2024-12-1118 minBizNexus Roundup5 Private Equity Strategies Used In The Lower Middle Market To Create ValueThe Mondaq article outlines five key private equity strategies employed in the lower middle market to boost the value of portfolio companies. These strategies encompass buy-and-build acquisitions to create larger entities, operational improvements to enhance efficiency, growth capital infusions to expand markets, management team enhancements to improve governance, and meticulous exit planning to maximize returns on investment. The ultimate goal is to transform smaller businesses into more competitive and profitable ventures. The text originates from Mondaq, a legal information resource.Dive into private equity here...
2024-12-1033 minBizNexus RoundupSPV Spotlight: Private Equity Edition 2024Carta's 2024 "SPV Spotlight: Private Equity Edition" report analyzes trends in Special Purpose Vehicles (SPVs) used by private equity and venture capital firms. The report reveals a significant increase in both the number and size of SPVs, driven by macroeconomic factors and the changing PE fundraising landscape. Key findings include rising median SPV sizes, varying LP counts, and typical management fee structures. The report uses data from over 400 U.S.-based SPVs managed on Carta's platform. Carta also promotes its equity and fund management services throughout the report.Join the waitlist for t...
2024-12-0912 minBizNexus RoundupVanguard's economic and market outlook for 2025Vanguard's 2025 economic outlook report analyzes the surprisingly strong U.S. economy, attributing its growth and disinflation not solely to Federal Reserve policy, but also to positive supply-side factors like increased productivity and labor. Conversely, other developed economies experienced slower growth while achieving disinflation. The report forecasts continued higher-than-historical interest rates, suggesting a favorable outlook for bonds, while expressing caution about potentially overvalued U.S. equities and recommending international equities as more attractive. Finally, the report acknowledges significant risks stemming from potential policy changes and geopolitical factors.See the complete analysis here: https://corporate.v...
2024-12-0814 minBizNexus RoundupTechnology leads the M&A recovery chargePitchBook's Q3 2024 Global M&A Report reveals a surge in technology mergers and acquisitions, exceeding the recovery in other sectors. This significant increase, totaling $220.6 billion in value for the quarter, is attributed to factors such as interest rate cuts and rising tech stock valuations. Private equity firms played a major role, accounting for six of the ten largest tech acquisitions. The report suggests increased optimism among private equity investors regarding future M&A activity compared to corporate buyers. Strong tech valuations are driving this robust M&A environment.View that full report here: https://pitchbook...
2024-12-0708 minBizNexus Roundup2025 Global Private Equity OutlookThis report, compiled by Dechert LLP and Mergermarket, examines the global private equity (PE) market's outlook for 2025, based on a survey of 100 senior PE executives. The report analyzes deal trends, fundraising challenges, exit strategies, and the increasing role of sustainability and ESG factors. Key findings reveal optimism for 2025 despite ongoing economic and geopolitical uncertainties. The report also explores the use of co-investments and private credit, as well as the potential for increased regulatory scrutiny. Regional spotlights on North America, EMEA, and Asia-Pacific offer specific market insights.Download the full report here:https://ionanalytics...
2024-12-0622 minBizNexus RoundupPrivate credit continues rapid expansionAccording to a financial review article, Private credit, a rapidly expanding asset class exceeding $US1.6 trillion globally, is attracting investors seeking diversification and enhanced yields in uncertain economic times. The market's growth is driven by attractive returns, low correlation with other assets, and resilience during economic downturns, particularly in the middle market where traditional financing options may be limited. However, investors should carefully consider an asset manager's sourcing capabilities, track record, and workout procedures before investing. The IMF advocates for greater regulatory oversight and transparency within the...
2024-12-0518 minBizNexus RoundupM&A POISED FOR A BREAKTHROUGH: WHY 2025 COULD BE THE YEAR OF OPPORTUNITYThis Eaton Square article predicts a surge in mergers and acquisitions (M&A) activity in 2025, driven by currently favorable market conditions. Competitive pricing, strong liquidity, and increasing leverage metrics are cited as key factors. While M&A deal flow remains slow in late 2024, the authors anticipate a significant increase in activity next year due to lower interest rates and other market incentives. This anticipated increase could negatively impact pricing and terms. The report emphasizes the significance of equity investment in leveraged buyouts.View that full article here: h...
2024-12-0518 minBizNexus RoundupThe Outlook For M&A In 2025According to a Board Member article, Experts predict a surge in mergers and acquisitions (M&A) activity in 2025, driven by factors like abundant capital, falling interest rates, and the need for digital transformation. However, regulatory hurdles and political uncertainty pose significant challenges. While some sectors are expected to experience significant growth, others may see only modest increases in M&A activity. Consultants offer advice to CEOs and private equity firms on navigating this complex landscape, emphasizing strategic planning, readiness for rapid deal execution, and preparedness for potentially lengthy regulatory approvals. The o...
2024-12-0427 minBizNexus RoundupThe Advantages of Disciplined Lower Middle Market Direct LendingThis article from InsuranceAUM.com, authored by TPG, argues that Lower Middle Market (LMM) direct lending offers superior risk-adjusted returns and diversification compared to Upper Middle Market (UMM) lending. The authors contend that less competition, higher spreads, and stronger lender protections characterize the LMM. They further assert that the LMM presents a larger opportunity set focused on private equity-backed firms, while dismissing arguments suggesting higher risk in the LMM due to flaws in typical risk assessments. Ultimately, TPG advocates for increased investment in LMM direct lending.View...
2024-12-0319 minBizNexus RoundupPrivate Equity Pulse: key takeaways from Q3 2024EY's Private Equity Pulse Q3 2024 report highlights a significant surge in private equity (PE) deal activity, up 36% in value year-to-date. This rebound, fueled by improved financing conditions and a narrowing of valuation gaps, is particularly strong in the technology sector. Looking ahead, the report anticipates continued growth driven by potential interest rate cuts and increased investor confidence. However, exit activity remains somewhat subdued, although PE firms are increasingly acquiring from each other. Overall, the report projects a cautiously optimistic outlook for the PE market, with firms prioritizing...
2024-12-0227 minBizNexus RoundupAI Roundup: M&A Industry Trends & Outlook 2025DFIN's report analyzes mergers and acquisitions (M&A) industry trends and provides a 2025 outlook. The report notes a recent decline in M&A activity in 2024, primarily due to high interest rates and global economic uncertainty. However, it predicts a rise in M&A activity in 2025, driven by factors such as decreasing interest rates, increased private equity investment, and the need for digital transformation. Specific sectors expected to see growth include technology, healthcare, energy, and automotive. The report also highlights the increasing role of AI in M&A processes and...
2024-12-0121 minBizNexus RoundupHome Goods M&A Market UpdateCapstone Partners' October 2024 Home Goods report analyzes the sector's merger and acquisition (M&A) activity. Despite economic headwinds, M&A volume significantly increased year-over-year, driven primarily by strategic buyers seeking consolidation and growth. The report highlights notable transactions, particularly in mattresses and consumer electronics, showcasing rising valuations and deal sizes. Public equity markets also indicate a positive outlook for the sector, supporting strong M&A activity. Finally, the report details Capstone Partners' services and expertise in assisting companies navigating the Home Goods market.Download the full report here: https://www.capstonepartners.com/wp-content/uploads/2024/10/Capstone-Partners_H...
2024-11-2916 minBizNexus RoundupLeveraging Collaboration Partners To De-Risk a Sell-Side Engagement"Every process is a snowflake." Daniel Sheppard.In today’s episode, we sit down with Daniel Sheppard from MedWorld Advisors to discuss MedWorld’s hands-on approach to managing the sell-side process, including their unique use of "collaboration partners" to help bulletproof the sell-side diligence process and how this creative tactic adds value for the seller at critical stages of the transaction. Daniel shares how MedWorld leverages highly niche collaboration partners to help de-risk the deal process from start to finish, leveraging a proactive strategy to keep complex, middle market transactions on a controlled track. He also...
2024-11-0318 minBizNexus RoundupInsights On Lower Middle Market M&A Activity In South Florida With Russell CohenWelcome to the BizNexus Podcast! In this episode, we sit down with Russell Cohen of South Florida M&A Advisors for an in-depth discussion on the booming M&A landscape in South Florida. With a wave of new companies, residents and a vibrant, evolving business scene, South Florida is becoming one of the hottest markets for mergers and acquisitions.Russell shares his expert insights on the industries driving this growth—from real estate and tech to fintech and healthcare consolidation. They discuss the current trends among buyers and sellers, typical timelines from initial contact to closing, and wh...
2024-10-0221 minBizNexus RoundupSOTU: M&A Transaction Tax Strategy with Bob FarissWelcome to the BizNexus Podcast! In this episode, we sit down with Bob Fariss, a trusted tax transaction specialist working with M&A advisors operating in the lower middle market, for an in-depth look into the complexities of transaction taxes—a crucial topic as we approach 2025. Bob explains how evolving tax laws impact M&A deals, especially in the lower middle market, and why advisors increasingly turn to tax experts for guidance in navigating these challenges.We explore vital topics specific to successfully transacting larger, complex M&A deals, including capital gains taxes, interest deductibility, bon...
2024-09-0624 minBizNexus RoundupDue Diligence 101 - Virtual Data Room Overview, Tips and Tactics with Estelle BlackIn this episode we chat with Estelle Black from MedWorld Advisors and her vast experience managing the virtual data room (VDR) in her crucial role acting as an Intermediary in the company. We break down how VDRs work on behalf of clients not only as a data collection and management tool but also as a marketing tool. In this Roundup we get into the nitty-gritty breakdown of:What is a virtual data room (VDR)What are the key items that should go in a VDRWhy the level of security of...
2022-09-2018 minBizNexus RoundupWho's Your Buyer? A Look Into The Most Common Types of Buyers In A Business AcquisitionUkraine Links - How You Can Helphttps://www.biznexus.com/blog-post/how-to-help-ukrainehttps://www.comebackalive.in.ua/Podcast OverviewFor this Roundup we dive into the most common, active types of buyers we've been seeing in this market when it comes to business acquisition.Competitors / Strategic Acquirers Private Equity / Buyout GroupsIndividual Acquirers Your Own Management Team!!Dave & MedWorld focus on the MedTech niche , and Dave brings GREAT insights about what each different type of buyer is looking for in terms of price, terms, transaction timelines & more.Sh...
2022-03-1625 minBizNexus RoundupDon't Spill The Beans. Why Confidentiality Matters When You're Planning An ExitFor this Roundup we jumped into the topic of how to approach confidentiality and buyer coordination when you're starting down the road of getting your business acquired.Hal offers some great tips from the trenches, and shines a light on the intermediary's role when it comes to keeping all stakeholders discreet & in line as you move in towards a bidding process with potential buyers.Show Links:Hal FederHal Feder / Murphy BusinessHal Feder / BizNexusHal Feder / LinkedInIntro Music Artist: DJ Freedem | Track: Pretty BoyBizNexus: https://www.biznexus.com/Get prequalified for an acquisition...
2022-01-0233 minBizNexus RoundupDigital Business as an Asset Class With David Fairley of Website PropertiesWe chat with David Fairley, owner and founder of Website Properties, about the explosion of investment in digital businesses as an asset class competing for cheap money, that is generating ROI of 20-35% annually, versus investments in equities, Real estate, precious metals etc. We are at the point of the economic cycle where we are seeing an enormous amount of M&A and consolidation with aggregators aggressively acquiring digital businesses in FBA, Shopify, SAAS and Digital Agencies, publishing etc. It's the best seller's market in the last 13 years, and we want to know where it's h...
2021-12-3028 minBizNexus RoundupWhat should a buyer look for in an intermediary? Vice Versa? Roundup With Intermediary Hal FederFor this Roundup we jumped into the topic of what a buyer should look for when choosing an intermediary, and vice versa.How to get a broker to take you seriously?What's a broker actually looking for when they assess whether or not to engage with a buyer or seller?What should a buyer look for in a broker and how can you identify, and leverage the right one(s), the right way?Show Notes:04:00 What should a buyer look for in a broker?08:00 What should somebody hoping to buy a business look for...
2021-04-2924 minBizNexus RoundupAcquisition Financing in 2021: What's Available Now, What's Changing & How Much You Should Expect To Put Down For A Business AcquisitionAfter a brief COVID hiatus in March, the band is back together to chat with Jonathan Smith from Live Oak Bank about all things business acquisition financing in 2021. We run through:How the financing market has changed over the past year through the pandemicWhat to expect through 2021 in terms of financing availability How much should buyers be prepared to put down for an acquisition through year-endShow Notes:02:30 Live Oak Overview04:00 Financing Trends05:30 Additional items lenders have been collecting due to COVID10:30 Availability of financing State-by-State and how shutdowns impact availability of financing11:30 Seller n...
2021-04-0220 minBizNexus RoundupEmpire Flippers Capital: A New Model For Acquisition Financing & Passive InvestmentWe kick off our first podcast with Mike Vranjkovic of Empire Flippers. Mike heads up Empire Flippers new passive investment program, EF Capital which just recently launched and is disruptive for a number of reasons:As an operator it gives you access to a potential ocean of capital you’d otherwise have a hard time getting in front of to fund a business acquisitionAs an accredited investor this allows you to passively invest capital into direct investments in the online space.Show Notes02:36 - EF Capital Overview07:00 - What's in it for the investor?13:30 - W...
2021-02-2523 min