01 Oct Around the Web: A Week in Summary
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A recent article from Axial entitled “3 Takeaways from 6 Months of Covid-19 Deal Data” reviews data from Axial’s Coronavirus Lower Middle Market Deal Activity Dashboard. The dashboard was released in late March and serves as a real-time indicator of financing and M&A activity.
Key data highlights include:
- The number of new deals going to market is on the rise again
- There has been an increase in executed LOIs over the past 3 months
- Investor interest remains flat based on signed NDA activity
A recent article from ValueWalk entitled “With Jobs Eliminated Daily, Is Now The Right Time To Buy A Business?” discusses an option for individuals who may have lost their job and are experiencing difficulties in finding a new position. This option is buying a business.
Buying a business allows someone to become a business owner quickly and with less risk than starting a new business. They can take the experience and skills that they have gained from their previous employment and apply it to an existing business to help that business grow.
One may also consider buying a franchise. A franchise will come with a proven track record and a formula to follow to increase the chance of success.
A recent blog post from Exit Strategies Group entitled “Private Equity is Open for Business” discusses the current state of private equity. Rumblings from the industry include:
- Private equity firms are actively looking for deals
- The volume of quality companies coming to market is significantly down
- There has been a decrease in buyers, but the decrease in sellers is much greater
- Valuations and deal structures have remained strong