[Recent
updates to business owner studies indicate that approximately 1.2 -1.5
Million U.S. business owners with businesses between $2M and $100M in revenue
need to sell in the next 3 years to provide liquidity for retirement]
Companies have stabilized. Many
companies that implemented cost containment or performance improvement measures
during the downturn are now reporting higher EBITDA - some on lower revenue.
Some companies have seen demand for their products and services rebound; others
have found new markets. Some markets, like healthcare, have continued to be
robust.
Many believe that there will be a
rush to the market in 2013-14 due to the following dynamics:
- Business results have
rebounded
- Business owners that wanted
to sell during 2008-12 now feel a sense of fatigue
- Business owners will be five
years older by 2013 than they were in 2008
- After the 2012 presidential
election, there may well be a period of disillusionment as business owners
recognize that the president alone (regardless of party) cannot fix the
economy
- Business owners may fear
that taxes will continue to rise and the dollar will continue to weaken
- M&A professionals and experienced business owners know
that valuation multiples are higher earlier in a sales boom than later in
the cycle
Mead Consulting cut its teeth
helping companies grow and add value. Growth is still our primary focus.
However, as our client business owners "matured" we began to help
them prepare to maximize value when transitioning or exiting the business. MCG
senior consultants have helped dozens and dozens of companies successfully
prepare and navigate through the sales process - both in operating roles
as business owners and C-level executives inside their own companies as well as
advising MCG client companies. Today, Mead Consulting helps many companies "get
ready."
We have seen a dramatic increase
in the numbers of companies that are preparing to sell in 2013-14. These
are some of the companies Mead Consulting is currently working with to improve
readiness and maximize value:
- Healthcare services
- Healthcare IT
- Building materials
- Metals service centers
- Manufacturing
- Technology-enabled
services
- Software
- IT services /outsourcing
- Business services
