|
|
Bailey McCann, Opalesque New York: Family owned businesses represent approximately 80-90% of the 30 million businesses in the
United States according to the Conway Center for Family Business, and the vast majority of those are middle market businesses. That creates a significant opportunity for middle market private equity, but for families and founders that are looking at the investment landscape, there are often a lot of questions about what the choices are. A new paper from Investcorp looks at how the market has shifted, putting more power in the hands of business owners.
"We're in an environment where there are more options for founders and families than ever before in terms of how you want to structure a sale or an investment," says David Tayeh, Head of Private Equity-North America and Investcorp. "For businesses that are high quality and have differentiated themselves, owners really have the upper hand in the market right now. Moreso than we have seen at other points in history."
In the paper, Tayeh and Kirk Fleischer, a Principal in Investcorp's Private Equity - North America group, outline how a perfect storm of cheap financing, robust economic growth, and a growing number of people nearing retirement age has meant that more businesses are seeking outside investors. Competition for deals is heating up, giving sellers the power.
In this market, private equity has emerged as an increasingly dominant provider of growth capita...................... To view our full article Click here
|
|