M&A Blog

Private Equity Buyers Hungry, Hunting

July 26th, 2011

Let there be no doubt – it’s a great time to sell a business. My phone rings regularly with private equity group representatives looking for deals.

“Private Equity buyers are sharks. They must keep moving to stay alive,” quipped David L. Perkins, Jr., Managing Director of Acquisition Advisors. “Sitting still is not in their DNA. They hunt and they acquire. And because the food is scarce these days they’re more aggressive than ever,” he continued.

Other industry experts are echoing the same. “Prospective buyers are swarming quality sellers,” said Hector Cuellar, president of McGladrey Capital Markets. “Private equity firms have their checkbooks out. They were previously anxious to find bargains – now they just want to deploy their assets as best they can since there is such a lack of quality deals.”

Perkins explains, that private equity groups raise equity from investors and if they fail to deploy the capital, via the purchase of companies, they risk losing the funds. Investors want high rates of return, and if one PE firm is unable to put the monies to work at attractive rates, the capital providers will move their money – to those that can.

Businesses that are performing well today have a great opportunity to sell for a premium today. There is an imbalance of supply and demand favoring the sellers. If you think now might be a good time for you exit quietly, confidentially, and for absolute maximum, call 877-525-4321 to visit with an Acquisition Advisors dealmaker.

All rights reserved. Copyright DL Perkins, LLC. © 2014.

Acquisition Advisors is a business unit of DL Perkins, LLC. To learn more about Acquisition Advisors, go to www.AcquisitionAdvisors.com.

This content is intended to provide general information on the subject matters covered. It is distributed with the understanding that neither the publisher nor any distributor or advertiser is engaged in providing legal, tax, insurance, investment or other professional advice. The advice of a qualified professional should be sought before any reader applies a concept presented herein to his or her particular situation or business.

One Response to “Private Equity Buyers Hungry, Hunting”

  • Jeannine says:

    But, be careful! There are companies out there that really are sharks. I have met some recently. If they ask you for money up front, ask them for more info. Ask for proof that they have an equity group waiting to pay you. Ask for the terms. If it sounds to good too be true – IT IS! Don’t let your mind lead you along because you want what they tell you is gong to happen. I did this and I realized it was my desire to have it be the way they said it was going to be and not my good thinking. I knocked down every objection MYSELF! When I finally stopped to look at the facts, I was sad, but not surprised. I should have done a better background check. I lost $7500on this scam! Don’t be chump bait. Do your homework. And DON’T pay anyone anything until you are satisfied they are who they say they are!



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