M&A Market Outlook
2015 M&A Market Outlook
The year 2014 saw a rise in M&A activity, making it the best year for transactions since 2007. Most of the activity occurred in healthcare, technology, energy and consumer products. This trend is expected to continue in 2015 with the majority of deals occurring in these same sectors. According to the KPMG 2015 M&A Outlook Survey Report, this trend is attributed mainly to the abundance of cash in the market. Other causes include low interest rates, record stock prices and improving employment rates.
What does this mean for sellers?
With so many prospective buyers, sellers should be optimistic as there is a strong market for business acquisitions. Sellers with established businesses looking for a quick exit strategy for retirement or for other ventures might find it easier to sell their businesses in comparison to what was possible a few years ago.
What does this mean for buyers?
There are more strategic opportunities in the market that entice buyers. Many corporations are looking for more opportunities to expand their geographic reach and customer base or to enter new lines of business. In some industries, it might be more economical to purchase intellectual property than it is to develop it in-house which may be another reason why certain Buyers are drawn to purchase companies.
Why can we do for you?
Many economists believe that the M&A environment in 2015 will have a rise in the value of mergers and acquisition transactions and consequently, the risks associated with these deals are expected to increase. In order to ensure a deal is successful it is crucial for participants to have a well-executed integration process, accurate valuation and effective due diligence.
This is Beacon Brokerage’s area of expertise. We are Toronto’s premium business brokerage, M&A advisory and valuation firm, specializing in transactions of companies with revenues of $1 to $50 million. Beacon has an established presence in the GTA region and is growing in south-western Ontario with its new location in London. We are a one-stop shop and provide our clients with all the services they need when selling their business from valuation, to confidential marketing, negotiations and closing procedures.
If you are considering selling a business or are interested in one of our current businesses for sale, get in touch with one of our brokers.
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