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M&A Insights – Mark Young, Managing Partner, CKS Advisors

Welcome to the May edition of M&A Insights 2018.  Our goal at CKS Advisors is to help you and your clients stay up-to-date on the current Merger and Acquisitions climate.

This month’s report is an article from PNC Business Credit, Retiring ‘Boomers’ May be Running Out of Time.  Click here to view report.

Key Points:

  • The market is hot in the seller’s favor for now- but nobody knows how long it will last. Currently, PE and Strategic buyers have significant amounts of cash on hand and debt financing costs are at historically low levels
  • The key to monetizing a business is to have a plan- understand the available options, and prepare for the transition.
  • Build your transition team- the most important people to speak with early are an attorney, tax advisor, and investment banker

Our two takeaways:

  • Despite this article being written in 2015, the same principles apply today. The market has seen valuations rising but at much slower pace since 2015- and nobody can predict how long the plateau can be sustained. The opportunity “window” to capitalize is shrinking.
  • Successfully transitioning requires the right team in place- attorneys, tax advisors, and investment bankers. The right team will allow for better chance of success and a maximization of value.

Stay tuned for more brief updates on M&A activity in the future.

If you or a client would like to learn more about the M&A market or is ready to explore opportunities, we would be glad to meet. You can contact me at 480-351-8533 or myoung@cksadvisors.com.