In a recent survey of 100 advisors, investors and buyers of private middle market companies, 41 percent say that M&A is the primary strategy being used by companies to grow in 2015. The survey, conducted by Axial, an online platform that connects private companies to capital, suggests that organic strategies are less in favor than a more aggressive recipe for growth. Twenty-two percent of respondents pointed toward product and customer expansion as companies’ number one growth strategy and 18 percent believed companies would move into new geographic markets to achieve growth.
Respondents also believe that corporate mergers will be the deal type with the highest volume this year (36 percent), compared to transactions involving debt (31 percent), equity financings (22 percent) or asset acquisitions and sales (12 percent).
“Corporations of all sizes are taking advantage of a time where they have the ability to go out, raise relatively inexpensive capital, and start buying up companies,” said Allison Tepley, VP of Marketing at Axial. “On Axial, we’re seeing a wide range of corporate acquirers looking for deals – from large public companies knocking on their upstart competitors’ doors to mid-sized firms joining up with companies that can help them capture additional market share or expand their footprint.”
When evaluating the best companies to acquire, these strategic buyers, as acquisitive corporations are called, are more concerned with the record of growth a target company can boast than the rest of the buyers’ market. While private equity firms cite the existence of a strong management team as the most important metric of potential success when evaluating middle market companies for investment or acquisition, 50% of corporates say a strong record of growth is the key metric.
Ms. Tepley added, “Sellers who can point to impressive growth results, particularly over a volatile decade, are in a great position to attract buyers who may find it worth it to pay a premium for the synergy gained by acquiring these types of companies.”
Click here for full survey results.
0
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.
