What is the current state of the U.S. M&A market, and what are the contributing factors?


By Claudio Calado, Managing Director – Doeren Mayhew Capital Advisors

Mergers and acquisitions (M&A) activity in the United States remained strong in 2015 surpassing 2014’s record year following the financial crisis of 2009, both in terms of deal volume and deal value. There are certainly a number of factors contributing to the increase in M&A beyond overall growth and expansion in the United States.

Two factors that play a big role are cash availability, held by either corporations or private equity, and access to capital. The credit markets have rebounded remarkably since the financial crisis supporting M&A growth and activity with liquidity at historic low costs. Benefiting from both, in general, are M&A valuations, such that a wide consensus of private equity market participants consider the current state of the M&A market to be one of a “seller’s market.”

Since the market is favorable, should I consider selling my business now?

As with other markets, timing of market cycles is an important and critical component to consider when making decisions. This is no different for the M&A market. While on a macro level the state of the M&A market is positive, this may not be the case for all industries. Each business’ situation is different, and many factors need to be considered when determining the right time to sell, buy, raise capital or place debt. Speak to an investment banker to help you assess your specific situation and take advantage of market cycles.

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Claudio Calado is a Managing Director of Doeren Mayhew Capital Advisors, and can be reached at 248.244.3292. For more information on the current M&A market in your region or industry, contact our investment bankers today.