Credit crunch and financial crisis boost company acquisitions
Surprising though it may seem, current turmoil in the financial markets and the credit crunch are having a positive effect on mid-market company acquisitions.
There are two key reasons for this. Firstly, acquiring companies at the high end of the acquisition market no longer have access to the significant levels of borrowing required to purchase other large companies. Because of this they are moving into the mid-market creating greater demand.
Secondly, the challenges of today’s business environment have focused many mid-market companies on making strategically motivated acquisitions which ensure greater strength and the ability to resist the tougher economic climate.
Of course these are valid reasons for considering selling your business now but are these reasons supported by facts? Yes. In October we received 43 accepted offers amounting to more than £120,000,000! This is as high as it was before the credit crunch and financial turmoil of recent months. Indeed the interest and offers generated by our refreshingly different approach has remained remarkably consistent in recent times. It is clear that acquirers are still highly active!
