15 Feb Middle Market Business Outlook
Comment from Tom West:
We receive a lot of newsletters and email information from business brokers and intermediaries. Below is an excellent example of what some do. Informative, but it also sells Bob’s company. In fact I enjoyed reading it and also learned some things. If you’re going to have a company newsletter that you send to potential buyers and sellers, Bob’s is a good example of what can be done.
To all-
We enter the fifth year of tough economic conditions with some measurable positive signs for middle market transactions: SBA lending is clearly up in the Northeast, staffing businesses (leading economic indicator segment) are busy, and long-term debt remains at historically low levels. Job creation is returning.
Challenges remain with consumer confidence which includes the willingness by some to acquire a business. Many businesses now listed for sale with us are far more efficient than they were in the 2008 era.
It is a very good time to acquire a middle market business.
Strategic buyers have cleaned up their balance sheets and are executing acquisition strategies on the belief that valuations are moving higher over the next one-three years.
Our forecasts for 2012 project a ten percent increase in small business sales and a twenty-five increase in middle market sales. We believe that the first quarter of 2011 marked the low point of the small and middle market business selling cycles in the Northeast.
For United Brokers Group LLC the improved credit environment is the key to converting listed businesses to “sold”. We are pleased to announce our second major transaction in the past one hundred days with a major Massachusetts based lender United Bank, West Springfield, Massachusetts. Please contact us for lending officer contact information (we do not receive a referral fee from this lender) at this responsive publicly traded bank. The new year has started well and I want to acknowledge that this lender’s performance has been excellent.
We still struggle with inquiries from business owners demanding unrealistic asking prices but respond factually to such situations with hard market information. Demand for competitively priced, profitable businesses-with good quality financial statements–is high. There is no demand for overpriced listings especially with weak financial statements.
What’s Hot?
Technology especially telecom, IT, and security. Wireless business models are in demand.
Manufacturing with competitively priced real estate and clean balance sheets. High mix, low volume business models have buyers.
Internet based business models for consumer products.
We have Buyers for:
Manufacturing, telecom, and campgrounds & RV Parks with annual revenues of at least $1 million. Anywhere in the Northeast. Must be profitable with supporting financial statements.
Staffing companies with revenues of +$5 million. Professional and light industrial.
Robert A. Flynn
www.unitedbrokersgrp.com
www.UBGmergersandacquisitions.com
bflynn@unitedbrokersgrp.com
Managing Partner
United Brokers Group, LLC
(401) 744-0320
