June 2, 2022
Over the past few months we’ve been hearing concerns from prospective sellers of companies on the declining stock market, increasing interest rates, war in the Ukraine, etc…Despite the fact that their companies are performing well and have healthy backlogs, some of them feel they “missed the window” to optimize the monetization of their companies.
We are seeing the window wide open for sellers, here’s our world: While the S&P 500 declined 10% from 4/7/22 through 5/26/22 we sold 7 of the 9 total companies we’ve sold this year! Another 3 companies are scheduled to close this month and we have the backlog to exceed last year’s performance. 4 of the 7 companies we sold from 4/7 through 5/26 exceeded our client’s value expectations while the other 3 met our clients’ expectations.
The 7 companies we’ve sold over the past 7 weeks collectively generated $155 Million of cash for our clients who sold companies in a variety of industries throughout the country
With over $1 Trillion in Private Equity buyout funds that needs to be deployed, the shortage continues to be profitable companies coming to market…..so this doesn’t correlate with the public markets!
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!