BizNexus Roundup

Goldman Sachs' 2025 M&A Outlook report predicts a surge in mergers and acquisitions driven by several factors. Increased CEO confidence , stemming from clearer monetary policy and regulatory environments, will fuel corporate dealmaking. Corporate simplification , including spin-offs and divestitures, will continue, alongside a rise in capability-enhancing acquisitions , particularly in th...

Main Street business brokers are evolving to meet the demands of the Lower Middle Market , which involves larger and more complex deals than previously handled. This shift requires enhanced buyer outreach strategies , moving beyond simple online listings to utilize networks like BizNexus to identify qualified buyers with available capital. Furthermore, sophisticated deal structuring necessitates e...

This text by Calder comprises several market updates on mergers and acquisitions (M&A) activity in 2024, categorized by business transaction value (under $1 million, $1–5 million, $5–10 million, $10–25 million, $25–50 million, and $50–100 million).  The reports analyze market trends, valuations (using EBITDA and SDE multiples), deal structures (financing, earnouts), buyer dynamics (private equ...

This CFA Institute article examines agency risk in lower middle market private equity (PE) deals. Agency risk arises from conflicts of interest, primarily involving underqualified business brokers who often act as both marketers and financial/legal advisors to inexperienced sellers. The article highlights three key sub-categories of this risk: anchoring , bad advice , and telephone negotiations. M...

Schroders, a global investment management company, offers a wide range of investment products and services, including private assets, equities, fixed income, and sustainable investing options . They provide various investment funds and strategies tailored to diverse investor needs. The company also shares market insights and outlooks through publications and media. Their website features informati...

Northern Trust Asset Management's 2025 Global Investment Outlook report analyzes the global economic landscape and offers investment strategies across various asset classes. The report examines the U.S., European, and Asian economies, predicting a soft landing for the U.S. but highlighting uncertainties for China and Europe. Equity market analysis focuses on U.S. large and small-cap stocks, d...

A PYMNTS Intelligence report reveals that 95% of middle-market CFOs feel unprepared for upcoming regulatory changes , particularly those in smaller firms. Increased compliance costs, legal risks, and operational disruptions are significant concerns, forcing many to rely on external partners for compliance, hindering long-term investments. Smaller companies experience significantly higher regulator...

The RedlineDCS article discusses the "Great Wealth Transfer," the massive inheritance of $84.4 trillion from Baby Boomers to younger generations over the next two decades. This transfer will significantly impact the lower-middle market mergers and acquisitions (M&A) sector, leading to increased M&A activity as Baby Boomers sell their small and medium-sized businesses (SMBs). The...

This article from Akoya Capital discusses seven key differences between family offices and other investors in lower middle-market companies. Family offices possess a longer-term investment horizon , often stemming from their unique family wealth creation experiences. Their internal structures are diverse and complex , reflecting varied family member goals and needs. Investment strategies vary wide...

This McGuireWoods article advises single-family offices (SFOs) considering direct private equity-style investments. It emphasizes five key strategies: partnering with experienced independent sponsors to access deal flow; prioritizing deal sourcing and adhering to investment criteria; considering co-investing with experienced partners to learn and mitigate risk; leveraging existing industry knowled...

This article from Generational Equity discusses the increasing importance of family offices as buyers of middle-market companies. Family offices differ from other buyers due to their longer investment horizons and their active involvement in portfolio companies. Unlike private equity firms, family offices often seek to hold investments indefinitely and contribute operational expertise. However, ac...

This PwC report analyzes the mergers and acquisitions (M&A) activities of US family offices. Family offices are increasingly investing in smaller, growth-oriented companies , particularly in technology, biotechnology, and TMT sectors, shifting away from traditional real estate investments. The report highlights the complexities of these deals , including tax, regulatory, and cybersecurity cons...

This blog post from Raincatcher, a firm advising on mergers and acquisitions, explains how private equity firms operate and boost portfolio company growth. Private equity firms invest in and manage privately held companies, aiming for high returns through operational streamlining, revenue growth, and strategic acquisitions. They are compensated via management and performance fees. Key strategies i...

This blog post from Business Appraisal FL|GA|HI explains "add-backs" in business valuations. Add-backs are adjustments made to a company's earnings (EBITDA) to reflect expenses a new owner wouldn't incur, like owner's personal expenses or non-recurring costs.  The article details various types of add-backs, their impact on valuation, and best practices for their use. It em...

The provided text comprehensively explains seller notes in mergers and acquisitions (M&A). Seller notes are financing arrangements where the seller acts as a lender, receiving part of the purchase price over time. The text details key terms like interest rates and repayment schedules , emphasizing the importance of negotiation and legal considerations. It highlights the benefits for both buyer...

This monroe capital article provides a strategic guide to sourcing deals in the lower middle market (LMM) for 2025. It highlights the opportunities presented by the LMM, including a large pool of capital seeking smaller investments and business owners looking for exit strategies. The article also addresses key challenges like market fragmentation and limited data visibility, emphasizing the need f...

This Biznexus article provides a strategic guide to sourcing deals in the lower middle market (LMM) for 2025. It highlights the opportunities presented by the LMM, including a large pool of capital seeking smaller investments and business owners looking for exit strategies. The article also addresses key challenges like market fragmentation and limited data visibility, emphasizing the need for sop...

This article by reag examines the current mergers and acquisitions (M&A) landscape in the lower middle market, focusing on the impact of recent interest rate cuts. It highlights the increasing importance of proprietary deal flow—accessing deals before competitors—in securing favorable acquisitions. The article emphasizes the resurgence of platform acquisitions, a strategy where a core business...

This grata blog post discusses strategies for private equity (PE) firms to improve their proprietary deal flow, focusing on proactive business development. It highlights the importance of proprietary deals for higher returns and competitive advantage, emphasizing the need to move beyond relying solely on personal connections and intermediaries. The article examines several channels for sourcing de...

This Sourcescrub article examines how middle-market private equity (PE) firms, focusing on companies valued between $50 and $500 million, source deals. It highlights the advantages of this market segment , including a higher volume of potential acquisitions compared to larger enterprises. The text then details various deal sourcing strategies , encompassing traditional methods like networking and...

This Biznexus article provides a strategic guide for sourcing deals in the lower middle market (LMM) for 2025. It highlights the significant opportunities presented by the LMM , including a large pool of private equity capital and business owners seeking transitions. Key challenges in LMM deal sourcing are discussed , such as market fragmentation, limited visibility of potential targets, and compl...

This document presents the performance of CalSTRS' private equity portfolio as of June 30, 2024. Data includes capital committed, contributed, distributed, and market value for numerous limited partnerships. A key metric is the internal rate of return (IRR), though the report cautions that IRR figures, especially those from early partnership years, are interim estimates and not directly compa...

DFIN's report analyzes mergers and acquisitions (M&A) industry trends and provides a 2025 outlook. The report notes a recent decline in M&A activity in 2024, primarily due to high interest rates and global economic uncertainty. However, it predicts a rise in M&A activity in 2025 , driven by factors such as decreasing interest rates, increased private equity investment, and the nee...

This report, based on Deloitte's fifth annual corporate development survey of 357 professionals, examines the evolving landscape of mergers and acquisitions (M&A). It highlights the increasing importance of innovation in M&A strategies, emphasizing the need for corporate development teams to adapt to a rapidly changing business ecosystem. The report explores challenges such as deal or...

This McCombie Group white paper outlines strategic deal sourcing for family offices, emphasizing the importance of securing proprietary deal flow to maximize returns. It argues that family offices possess unique advantages over institutional investors, particularly in smaller deals or those with unconventional structures. The paper suggests treating business owners as valued customers, building re...