Recapitalization Replaces Burnout As Top Reason For Sale

by ExitAdvisor · 22nd November 2016

According to the International Business Brokers Association Q3 market report, raising capital has replaced owner burnout as the reason for going to market. This research applies to mid-market firms ($5 million – $50 million)

“The uptick in recapitalization activity could be an indicator that Lower Middle Market businessowners are becoming savvier about their exit planning options and planning more in advance,”said Scott Bushkie, Certified Business Intermediary, President of Cornerstone BusinessServices, Inc., and IBBA Chair.

The IBBA report also finds that smaller businesses (with valuations of under $2 million) are not favorably positioned in what is currently a buyers’ market. The IBBA Market Pulse Report compares conditions for businesses being sold on Main Street (under $2 million) to those being sold in the Lower Middle Market (values of $2 -$50 million). They survey was conducted in the US and is therefore not necessarily representative of the global market.

Read the report here.