Revenue growth for the third quarter of 2016 was near 6.3%, and two-thirds of middle-market companies are planning to invest extra dollars in future initiatives. Many mid-market companies are still operating with the intention of merging or being acquired in the future.
Some of the biggest sectors to watch for mid-market M&A activity will be in technology (cybersecurity tools, cloud-computing services, medical devices), as well as agricultural chemicals, consumer goods packaging, construction materials and aircraft parts and services.
Most of the action in 2016 has been in technology. With the threat of cyber attacks on the rise, governments, private industry and consumers have been scrambling for more protections against increasingly-advanced attacks. Mid-market companies have been leveraging their nimbleness and innovative cultures to lead the development of new cybersecurity technologies.
Companies like Cisco and Symantec have been acquiring dozens of smaller organizations to meet demand. Cisco recently acquired cloud software security e-startup CloudLock for $293 million and network monitoring firm Lancope for more than $354 million. “Companies offering [cybersecurity] protections have become highly sought targets for acquisition,” said Mergers & Acquisitions.
These tech deals have driven up M&A activity to new records, making the third quarter of 2016 a “blockbuster” for global technology M&A value. Many of these deals also are being done by “non-tech” companies such as Verizon—which is using M&A as an entree into IoT, and Walmart, which recently acquired Jet.com for $3.3 billion. “High on their list of interests is building [a] repertoire [of] Internet of Things, along with cloud, big data and mobile,” said Forbes.
The Citizens Commercial Banking Middle Market M&A Outlook surveyed 600 business leaders and also showed that 2017 should be an active year for mergers and acquisitions. Bob Rubino, executive VP and head of Corporate Finance and Capital Markets at Citizens Commercial Banking, said the momentum is being fueled by “owner fatigue or concern about the future” and a big pool of companies seeking acquisitions as a way to grow products, service lines and revenues. “We’re seeing sellers looking for exits and an uptick in buyers seeking growth,” said Rubino.
He said there also may be “pause” until the impact of the election becomes clearer on issues like capital gains, estate taxes, regulations and future stimulus spending. Rubino said there is a sense among mid-market decision makers that company valuations may have not yet peaked.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
