Is now the right time to sell my company?
Posted by Brian J Reilly at 4/7/2009 4:05 PM 
Categories: Valuing Companies 2009,Seller's Market in M and A,Deal Flow
Tags: PEG activity 2009 Mutiples paid Financing Acquisitions Deal Values M and A
Categories: Valuing Companies 2009,Seller's Market in M and A,Deal Flow
Tags: PEG activity 2009 Mutiples paid Financing Acquisitions Deal Values M and A
We have been receiving unprecedented calls form Private Equity Groups (PEGs) seeking deals in March and early April 2009. There appears to be a real shortage of good companies on the market and plenty of cash on the sidelines looking to be deployed. Many of the PEGs we speak to have recently raised capital form private individuals and are looking to make acquisitions with out any bank or mezzanine financing. We even have seen private companies raise capital through private placements avoiding the necessity of involving a bank to an acquisition.
You may ask, Is this activity a result of bargains and distress sales? Our answer is a resounding NO, deals are holding 2007-2008 multiples. I recently received an e-mail from a PEG principal complaining there are no bargains sales due to the economy. Remember when you sell or extract capital from your private company you are doing it based on historical performance not the future, and current conditions make it a great time to maximize on your companies success in 2007-2008.
You may ask, Is this activity a result of bargains and distress sales? Our answer is a resounding NO, deals are holding 2007-2008 multiples. I recently received an e-mail from a PEG principal complaining there are no bargains sales due to the economy. Remember when you sell or extract capital from your private company you are doing it based on historical performance not the future, and current conditions make it a great time to maximize on your companies success in 2007-2008.
Comments