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Government Shutdowns: Do they Affect the Lower Middle Market?


It might seem counter-intuitive to think about private small businesses somehow being affected by a federal government shutdown, but in a way, there are a few things to keep in mind when things in Washington go awry.


Uncertainty is a bad thing, no matter what level of the market in which you work. Needless to say, uncertainty when it pertains to the federal government, especially in the early days of a new year, can cause an uncomfortable stir no matter where you work. For federal employees working without pay, of course things are tough. As a business owner in the lower middle market, however, the effects can also be seen. Overall, uncertainty kind of puts equity exchange at a standstill, especially when it comes to newer and growing businesses.


Things often seem very unpredictable when Washington politics harm everyday Americans, and regardless of political affiliation and opinion, any actions that harm American workers can put doubt in all who operate in the business world at the corporate and ownership level. Investors are less likely to enter into deals and even entertain the idea of new partnerships when things seem shaky across the board. With 2018 ending positively with consumer index trends pointing upwards, the early days of 2019 and the partial federal government shutdown have taken their toll on early deals that capitalize on New Year optimism.


What often occurs this time of year is the entrance of booming lower middle market companies to a larger array of investors, so raising capital in January and February can be crucial to expectations set for the upcoming fiscal year. With less certainty surrounding life in general, let alone business acquisition and investing, these early months of whispered fear could manifest themselves later in the year, but also just as likely be surpassed entirely, throwing things off for the year.


So where is the bright side? Even when things look dim, there are ways to maneuver through trying times. The goal is to always stay connected to financial and business resources that know how these uncertain events play out. In other words, working with others who have experience with various situations that affect the lower middle market is essential during these more unclear periods of time. SA Capital Partners is effectively your crystal ball into the future; their experience and expertise can help guide your business through the uncertainty in Washington to ensure peace of mind at home and in your business.


About SA Capital Partners:

SA Capital Partners is an innovative financial services firm that specializes in mergers & acquisitions advisory and capital raising for lower middle market businesses. We aspire to give all the tools necessary to complete any transaction. SA Capital Partner’s financial services industry specialists provide comprehensive, integrated solutions to banking transactions. Our breadth of services and industry knowledge allow us to understand each client’s unique business needs. Our goal is to make all financial services available to every small business. Website: www.sacapitalpartnersllc.com Phone: (212)-235-2761 Email: info@sacapitalpartnersllc.com #sacapitalpartners #sacapital #sacapitalpartnersllc

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