Shulman Hodges & Bastian LLP

Why middle market transactions will continue in 2016

Last week’s gains marked a positive start to an otherwise lackluster month of trading so far this year. However, the struggles of energy stocks and the recent rise of interest rates are not likely to put a damper on the pace of mergers and acquisitions in 2016.

As we have noted in prior posts, it is expected that 2016 will be another banner year for transactions. While mega-mergers dominated headlines last year, the middle market (i.e. transactions between companies worth between $50 million and $2 billion) continue to drive the arc of transactions across industries. As such, the attorneys of Shulman Hodges & Bastian expect to help companies who wish to be acquired as well as those seeking to acquire a business.

This post will highlight a few of the reasons that analysts are predicting good things for middle market corporate mergers. 

Baby boomers looking to move on – For one, there is a contingent of family owned companies owned by baby boomers who are looking to retire and want to monetize the business. Perhaps they are not interested in passing it on to their heirs or want to enjoy their golden years in style.

Entrepreneurs looking to cash in – On the same token, Gen-Xers that have created startups who have caught the attention of larger companies are interested in cashing in on their investment of time, knowledge and good timing.

Corporations looking for knowledge and expertise – Entrepreneurs would be looking to cash in if large, publicly traded companies were not looking for ways to extend their own market reach by acquiring startups with innovative technologies.

If either of these describes your company or the state of your business, an experienced corporate transactions attorney can advise you. 

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