Sellers, Conditions Are Ripe
Time to take a bite at the apple.
Summer has arrived, and for many sellers and companies seeking liquidity, so have favorable market conditions. A confluence of market events that include tax law changes, pent up supply of corporate cash, uninvested private equity capital, renewed strength in the leverage markets, pending exits by private equity, and increasing transaction multiples generates a set of circumstances that could lead to a robust second half of 2012. Many sellers may be compelled to take a step into the M&A markets (i.e., their first bite at the apple) because of the favorable market conditions while others could look to explore recapitalizations and take some money off of the table, while helping themselves to a second “bite at the apple” upon a subsequent sale. In either case, conditions look to be ripe for both.
This new article features insights on the current M&A and tax environments and discusses some strategic opportunities available to companies seeking liquidity.