Increased Capital Creates a Seller's Market

Posted by Deborah Domroski on Nov 21, 2017 12:00:37 AM

Bloomberg reports private equity firms currently have more than $950 billion of capital waiting to be invested in the marketplace.

The results:

  • Private equity firms are competing for quality investments.
  • EBTIDA multiples have increased significantly.
  • A seller’s market exists for entrepreneurs looking to exit their businesses.

Business owners hoping to cash in on historically high valuations need to be prepared.  The following steps should be taken to reap the most advantageous outcome.

  • Research transactions occurring in your industry.
  • Take note of where private equity firms are investing and the multiples being paid to similar companies.
  • Make sure your business is exit ready.

PCE has developed an Exit Readiness Assessment to help business owners determine their company's readiness for a sale or other transaction.[templatera id="877"]

Topics: Articles, M&A, Private Equity