If “match.com” had a section for private equity firms interested in businesses ripe for growth, it would be getting a lot of hits right now. With over $1 trillion in capital to spend, cumulatively, private equity firms have ramped up their deal-making. I’m seeing a strong interests in transactions with companies in the $10-100 million range. This is excellent news for the U.S. economy and particularly for entrepreneurs. An influx of capital makes the wheels start turning: Markets move faster, categories get more competitive, analysts pay more attention.
Our private equity clients are heavily engaged in due diligence these days. Those we know best are focused on:
- Competing with other PE firms for the good deals.
- Finding sellers who have properly prepared their businesses for acquisition by ensuring their value is replicable and transferable.
- Targeting non-U.S. businesses that see huge growth in penetrating our domestic market but have not yet made the jump into the U.S. marketplace.
By all indications, 2014 and 2015 look strong for business growth. Imagine the level of innovation that’s waiting to be discovered. The next WhatsApp is out there, and with some “dry powder” as they call it and the right strategic buyer, it will turn to gold.