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High Demand for Sellers Drives Valuations Up

The Law of Supply and Demand is one of our most core economic concepts. It explains that all else being equal, the price of a good tends to increase when the supply of that good decreases (making it rarer), or when the demand for that good increases (making the good more sought after). Over the […]

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Sell in 2021 before Biden’s Infrastructure Plan?

If you are a business owner of the baby boomer generation, you may have already reevaluated your succession plan in light of Biden’s Tax Plan. As a reminder, under Biden’s proposal, owners who make more than $1 million would face nearly double the taxes after selling their businesses. Because we expect the new taxes to be implemented […]

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Biden’s Tax Plan, Baby Boomers, and When to Sell

Over the last month, just about every business media outlet has written about Biden’s expected tax plan. Here are the key points that we are keeping an eye on, as they pertain to middle-market M&A transactions. Business owners will be affected by any change to capital gains taxes As the plan stands now, the president-elect […]

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Tricky Transitions in Family Businesses

As we head into the 2020 holiday season, we are all thinking about family. Did you know that there are an estimated 5.5 million family-run businesses in the United States? Prior to COVID-19, it was estimated that family businesses contribute 57 percent of the GDP and employ 63 percent of the workforce. Like any of […]

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What the M&A Deal Data Tells Us

In late March 2020, Axial launched the Coronavirus Lower Middle Market Deal Activity Dashboard to track real-time financing and M&A activity in the lower middle market. Now that six months have passed, here are three important trends they have identified in the data: 1. New deals going to market are on the rise  In March and April, we all […]

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Private Equity Activity Expected in the Remainder of 2020

While there is no question that the first half of 2020 was challenging as we all adjusted course, multiple experts feel that private equity activity may perk up in Q4. Economic uncertainty slowed things down in Q1 and Q2, greater availability of credit, as well as a focus on add-on acquisitions and innovation, may begin […]

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COVID Leads to Strategic Shifts in M&A Activity

Timing is everything in business deals. Success is all about choosing the right time to make an offer, the right time to accept an offer, the right time to wrap up due diligence, and proceed with a deal. COVID-19 has thrown off our timing. We need to release our pre-pandemic way of doing business and […]

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Private Equity Seen As Smart Risk In Uncertain Times

Traditionally, investing in the stock market was seen as a logical choice for most investors, regardless of wealth. Private equity, on the other hand, is commonly seen as riskier with the potential of realizing high rewards and high losses. That perception could be changing in 2020. FOX Business has reported that ultra-wealthy individuals increased their […]

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Due Diligence During the Pandemic

When you start to consider a deal, the seller hands over mountains of records and paperwork for you to review. But as a responsible investor, you need to go beyond that. Due diligence is defined as an investigation of a potential investment to confirm all facts. This process often includes reviewing all financial records, past company […]

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Is It Possible To Secure Debt Right Now?

Amongst historical levels of uncertainty, it can be very difficult to know when it is “ok” to grow your business. Some businesses, as we have discussed, are in such high demand that they can’t help but grow. Others are simply well-positioned to weather the current situation and move forward with existing strategic plans. From our […]

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