Private Markets: Stop the Clock!!

According to Robert T. Slee, an investment banker and influential author of Private Capital Markets: Valuation, Capitalization, and Transfer of Private Business Interests, US private markets operate on a 10-year transfer cycle, and mid-market companies are currently in the midst of unprecedentedly high valuations and a pre-recession earnings boom (Seller’s Market). Slee’s corroborated data suggest that this prime selling time will begin to diminish towards the end of 2017, transitioning into a period of uncertainty until 2020 (Neutral Market), followed by a period of deal recession (Buyer’s Market) through 2023 before returning to current market levels again.

Private equity groups (PEGs) insatiable appetite for deals at above-average multiples remains undeterred, and stagnant, large corporations continue to look for growth through acquisitions of mid-market companies. With the largest demographic of mid-market business owners between the ages of 54 – 58 and more than a quarter of a million Americans turning 65 every month, the time to formulate and implement a comprehensive exit strategy is now!

Whether it’s selling to a PEG, a strategic, or watching your “baby” flourish, Allston Advisory Group has the experience to assist you with the desired transaction for your business.