Regardless of which market segment you look at, 2018 was a strong year for mergers and acquisitions. The lower middle market, most familiar to many in the United States, posted total transaction volume of $349 billion, which exceeds last year’s total of $329 billion. This represents a year-over-year increase of $19 billion, or 6.0%, meaning a lot of optimism, and rightfully so.
Several factors will continue accelerating M&A activity as we get deeper into 2019. First and foremost, companies are thirsty for innovation, disruption, and growth. These are traits that are typically very difficult to grow or initiate organically from within. The balance between keeping up and being innovative can be tough, especially when money is a major concern. When mergers and acquisitions are going less than smooth, financial service firms can help to ensure a smooth transition on paper so that you can focus on getting employees and managers on the same page. People make a business what it is, and if you are focused on growth rather than the details behind how to make the transaction happen, you may lose momentum that set you up for a merger or acquisition in the first place.
Similarly, roughly 80% of lower middle market business owners expect to build on a strong 2018 and set the stage for an even bigger 2019. That can mean a lot of great things are on the horizon, but it takes a big effort to keep excitement up, especially if things get hectic. With many financial service firms expecting to have another record year, transactions will continue to come through if business owners understand how to keep the energy high for investors. Finding investors is tough as is but keeping them optimistic and interested requires knowing what they are looking to your business for, and how they expect it to grow. The market is its own machine, but you can control the ways in which mergers and acquisitions fit into your growth plan. When money gets tight, matching up to new investors can be key to sustaining growth. Good ideas are good, but funding is great.
SA Capital Partners is looking for a record year as well. Even better, they have the expertise and knowledge to assist you in building on successes you are having so far in 2019 to make this your year to carve out a place in the lower middle market.
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.