15 Dec It’s a Great Time to Sell a Business
We’ve written recently about premiums being paid for the purchase of private companies due to a supply-demand imbalance that has emerged that favors sellers (see “Premiums Being Paid Due to Supply-Demand Imbalance” and “Suddenly, A Business Seller’s Market.”)
The Wall Street Journal on Friday, in an article titled “Once-Cautious Carlyle Gets in Game,” noted that hedge fund and private equity firm partners are finding significant competition, i.e. lots of competing buyers. The author, Gregory Zuckerman, goes on to explain that buyout firms are widely known to be “fret(ing) about high takeover prices.” Still, one of the biggest in the marketplace – Carlyle Group – is as aggressive as ever. Zuckerman explains that Carlyle is “in the midst of one of the biggest deal splurges in its 23 year history.”
Carlyle is bullish on the U.S. economy and has spent $7 billion so far in 2010 on investments.
A business owner considering selling was in my office Friday asking, “Is it a good time to sell.” Well, it certainly is. We’re experiencing this first hand in the deals we are working now at Acquisition Advisors, and it’s in the news.