Benchmark International

2012 was a great year in terms of deal activity at Benchmark International and we have several reasons to believe that 2013 will surpass last year with market conditions primed for high levels of deal completions.

A primary reason for our high expectations is the increased levels of demand for mid-market companies originating from both corporate companies and private equity buyers. Both are currently sitting on a lot of cash in a high percentage of cases and mid-market acquisitions represent the best value investment.

Interest rates at record low

External economic factors invariably play the biggest role in determining the most salable time for companies. One of the biggest factors at play are interest rates and as you will probably already know, they are at a record low in both the US & UK, which is great for those considering selling their company.

Something you may be less aware of is that a very high percentage of buyers use some form of financing to secure their deals. Because of this, valuations typically tend to favor sellers.

Mountains of cash being sat on

With private equity deals accounting for 18% of total deal value in 2012 it seems that whilst corporates continue to drive deal activity, private equity involvement in the market remains very active. With roughly $1trillion dry power waiting to be deployed, private equity seemingly looks like it will provide high levels of deal activity once more in 2013, with an increase on 2012’s figures a strong possibility.

Looking into 2013, all the factors at play which served to make 2012 a record year at Benchmark International seemingly look set to continue, if not increase in their prominence. These factors, including strong appetite from the buy side and high levels of unspent cash available to corporate and private equity buyers look set to place sellers in a perfect position to achieve maximum value for their companies.

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