News

The extended seller’s market – with unprecedented valuations and aggressive debt availability being driven by non-bank lenders – continued unabated in the second quarter of 2017 according to our recently released GF Data M&A and Leverage Reports. GF Data collects and publishes proprietary information from over 200 PE sponsors on completed transactions valued between $10-250mm.

No one planning a business sale is eager to spend more than absolutely necessary in the pursuit of a good deal.

Buy-side teams are highly adept at detecting issues that can affect a deal. Even the best teams, however, may miss IT and technical aspects of the deal. These issues can greatly affect the cost of integration, while lowering the return on the investment. These seven sources of technical debt can significantly lower the value of a deal, while increasing costs.

2016 was an active year in M&A for mid-market decision makers, driven largely by a continued sluggish economy, a perception of topped out valuations and concerns that the period of low interest rates was coming to an end.

Many Texas business owners we speak with feel that securing a serious offer from a qualified buyer is the largest hurdle in realizing the sale of their business.

Middle market valuations averaged 7.0x and unwavering debt support continued middle market private transactions through Q3 2016 as reported.Analytical databases collect and publishes proprietary valuation, leverage and key deal terms benchmarks on completed transactions valued between $10-250mm.

The climate for M&A in Texas, while for the most part in accordance with the greater M&A market in the United States, definitely has some particular characteristics of its own.

After months of middle-market acquirers describing heavy deal activity characterized by abundant leverage and upward valuation pressure, these trends are fully present in our Data Q1 numbers: