![]() People overseeing today’s transactions are citing retirement as an increasingly common motivator for sellers. That has been a boon for baby boomer business owners, who had their plans for retirement put on hold somewhat by the past decade’s period of economic downturn. Private equity firms are also more eager than ever to bolster portfolios with new acquisitions. “They don’t want to miss the train they’re afraid it’s leaving the station.”ĭespite reaching a seeming top-dollar peak of valuations today, buyers still believe their greatest potential growth will come through acquisitions of at least a high enough level to gain partnerships. “These business owners have started to worry about how long the great deals are going to continue, and that’s driving a lot of their interest in M&A activity,” Scharfstein said. That uncertainty in itself has become a driver for many middle-market business owners on the seller side of transactions. Beyond that, he doesn’t have much certainty. And they were all terrific transactions, what I’d call high valuations.”īecause he works off a pipeline of future deals that often have enormous lead time prior to being closed, Scharfstein said his firm has a good idea of what’s to come - at least in the short term.īased on that, his forecast is that this year will be a strong one for mergers and acquisitions, and next year will start off similarly robust. “We had one period in which we did five deals in seven weeks, which is crazy for us,” he said. It’s a high-water mark that comes with excitement as well as concern, because the tide may soon turn back.įor the time being, Alan Scharfstein, CEO of the DAK Group, said his advisory firm is as active as it has ever been. “Starting last summer through today, those months have probably been my busiest of the past 30 years.”īut New Jersey’s M&A professionals can’t feel too bad about it they’re all experiencing a much-needed break from the Great Recession’s long-lasting slowdown of deals.īuoyed by an economic bounceback, private equity’s capital flow and foreign buyers, interest in mergers and acquisitions continues to rise for local firms facilitating these deals. “I went nine straight months without a vacation day, because there was just one thing after another coming through the door,” he said. How hot has the mergers and acquisitions business been in the state lately? Some would say you can chart the industry through its relationship with tourism and leisure - or lack thereof.Īt least, that’s the backhanded way Bob Anderson, chair of the Mergers and Acquisitions Group at Lindabury, McCormick, Estabrook & Cooper P.C., looks at it. As Published in ROI NJ Merger Mania: 2018 is Shaping Up as a Banner Year for M&A, According to the Advisers in the Middle of the Deals ![]()
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