Lower-Middle Market Considerations Moving into the New Year


We live in unsettled, unpredictable times, as the end of 2018 has proven. For business owners, now is the season to reflect on the past year and gauge what is coming for the economy and your business in 2019. There is much to consider. This past year, we saw a major corporate tax cut yield a short term bump and mixed results (dividends paid and stock repurchased, as opposed to massive capital expenditures, as were promised), interest rate increases (with a few more indicated), tariff battles and trade wars contributing to higher costs and uncertainty, the shuttering of manufacturing plants, agricultural bankruptcies and stock market volatility. There are also signs of an economic slowdown possibly leading to the next recession. Meanwhile, continued uncertainty about immigration policy and looming technology disruptions raise even more questions for business owners looking to plan.


And what about the trade war? The full tariffs war fallout remains hard to predict. While the G-20 summit in Buenos Aires yielded what appears to be a 90-day tariff truce with China, mixed messaging from the White House helped turn that win into more market volatility. Meanwhile, the signing of a trade agreement with Canada and Mexico seems to promise some stability. Now we will see whether Congress ratifies it in its present form.

One thing is certain: As tariffs begin trickling down to the consumer, we can expect diminished consumer purchasing power. Although there remains hope that this will be offset by lower energy costs, the outcome for your business may be decreased revenues and higher expenses.


It seems inevitable that technological innovation and automation will eventually result in millions of lost jobs. If that’s the case, “retrain and retain” may emerge as the operative slogan for economic survival as workers replaced by robots or other technology must be retrained for new and shifting positions. New jobs and job categories must be created.


Taking stock of all these major developments and changes in 2018 can be dizzying, but your middle market company should be picking up on cues and making its own hard decisions to adapt to the changing and future landscape.


All of this doesn’t mean the end, or some bleak future, it just means that this is the time to be planning ahead. SA Capital Partners has studied and worked in the lower-middle market long enough to know the ways around different difficulties and hurdles. Best of all, they don’t just advise you as you plan ahead, they also help get you to the next level with corporate advising and capital raising. Looking to grow or just getting to know the lower-middle market? Get in touch with SA Capital Partners today.


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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