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Declining Stock Market, Increasing Interest Rates = Increased Closings?

July 7, 2022

We caught up recently with a former client, a software business we sold 12 months ago.

“I’m glad I sold a year ago! With increasing interest rates, recession talk and declining stock market I’ll bet closings and valuations have declined in your world.”

We shared with him our recent activity:

  • 87% of the companies we’ve sold this year have been in the 2nd. Quarter, during which time interest rates increased and the S&P 500 declined.
  • We have sold 15 companies so far in 2022 that generated $282 Million of liquidity for our clients in various industries throughout the U.S. and Canada.

The companies we’ve sold this year all sold for valuations that met or exceeded our clients’ expectations and we’re on pace to realize our best year since inception (1993).

The most important factor for business owners evaluating optimal timing to sell is how their particular business is performing and what is the 3 – 6 month outlook.

With over $1 Trillion in Private Equity buyout funds that needs to be deployed, the shortage continues to be profitable companies coming to market.

For business owners interested in monetizing this is a very relevant discussion.

We look forward to helping you and your business owner clients and prospects, feel free to reach out anytime!