26 Jul Private Equity Buyers Hungry, Hunting
Let there be no doubt – it’s a great time to sell a business. My phone rings regularly with private equity group representatives looking for deals.
“Private Equity buyers are sharks. They must keep moving to stay alive,” quipped David L. Perkins, Jr., Managing Director of Acquisition Advisors. “Sitting still is not in their DNA. They hunt and they acquire. And because the food is scarce these days they’re more aggressive than ever,” he continued.
Other industry experts are echoing the same. “Prospective buyers are swarming quality sellers,” said Hector Cuellar, president of McGladrey Capital Markets. “Private equity firms have their checkbooks out. They were previously anxious to find bargains – now they just want to deploy their assets as best they can since there is such a lack of quality deals.”
Perkins explains, that private equity groups raise equity from investors and if they fail to deploy the capital, via the purchase of companies, they risk losing the funds. Investors want high rates of return, and if one PE firm is unable to put the monies to work at attractive rates, the capital providers will move their money – to those that can.
Businesses that are performing well today have a great opportunity to sell for a premium today. There is an imbalance of supply and demand favoring the sellers. If you think now might be a good time for you exit quietly, confidentially, and for absolute maximum, call 918-748-7995 to visit with an Acquisition Advisors dealmaker.