Business owners who have identified the one party—or handful of likely parties—on the other side of the table often understand they need assistance beyond what their other advisors will provide, but wonder what an M&A advisor will do to add value We’re able to attune our offering to the one-off or targeted transaction because it is our primary focus, not one we default into. We are able to charge less than traditional investment banks because we are not required to utilize and pay for the platform required to execute on full-out auctions.
Going back a year, a lot of us in the private M&A market thought that in terms of valuations and deal volume, 2024 would be a Super Bowl year. It’s been a good year. We made the playoffs, but why didn't we make the Super Bowl?
Now it looks like 2025 could be the year. Four sources of downdraft last year look like they’re headed the right way now.
One, corporate performance. In the industrial sectors where my firm, Greenberg Variations Capital is active, many OEMs loaded up on inventory to get ahead of their customers coming out of the pandemic.
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Selling an individual or family-owned private company used to be like hitting a golf ball. Today it’s more like swinging at a 98-mph, split-finger fastball.
If investment bankers were beginning a sale assignment in 2010, they would ask the business owners to share information on past exchanges with potential buyers. The clients would turn over a few emails or letters and recount a couple of trade show conversations that amounted to, “Call us if you’re ever ready to talk.”
That is not how that conversation goes today.
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