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Lingate 2020 M&A Outlook: Market momentum building toward 2020 election

Lingate 2020 M&A Outlook: Market momentum building toward 2020 election

The regional M&A market for lower middle market businesses (revenue of $5M - 50M) has continued to be very active in 2019, adding to a very strong four-year period before and after the 2016 presidential election. A combination of high election anxiety and strong economic drivers - available investment capital, relatively low interest rates, low unemployment and growing economy - have led to an unprecedented amount of internal and external business transitions the past four years. With presidential campaigning for 2020 well underway (and getting louder), we see many market similarities to 2016, and expect to see M&A market momentum building the remainder of 2019 and the first ten months in 2020 leading up to the election.

Transaction multiples continue to hold near the top of the market for above average companies (growing, efficient, profitable). Under-performing companies, and companies with unpredictable revenue and earnings, continue to sell but require more extensive marketing, longer timelines, and are likely to achieve lower multiples than consistently high performing companies of a similar size. All of the major buyer groups remain very active and seeking acquisitions, including large public and private companies, private equity groups, family offices, high net worth individuals, and partnership groups. Lingate includes all of these buyer groups whenever possible in our national marketing engagements.

Lingate transaction highlights

We’re very proud to have recently represented the following companies:

  • Tafco Truck Equipment - Sale of national manufacturer of Scott brand truck bodies and hoists

  • Regional manufacturer/distributor of construction products - Internal partner buy-out

  • Lubrication Technologies - Acquisition of Reliable Plus Car Wash Systems

  • Sale of exclusive regional wholesale distributor of branded office furniture

  • Groups Meetings Incentives Inc. - Sale of full-service corporate meeting and event planner

  • Spectrum Aeromed - Sale of manufacturer of air ambulance interiors used throughout the world

  • Iconic Minnesota entertainment and catering company - Internal management buy-out

  • Sale of national importer/distributor of lawn & garden products

If you are considering an internal or external transition of your company, we would enjoy visiting with you to learn about your company and your plans for the future. Lingate is able to tailor a service plan, resources and fee structure to meet your needs and accomplish your goals.

Greg Loeschke