According to a recent Frost and Sullivan M&A report, they cite the key barriers to a successful M&A strategy. They clearly quantify the primary reasons why more deals don't get done. In other words, what's stopping them? As expected, the biggest reason why transactions don't get done is price. Over a third of all deals according to their report can't reach agreement on valuation. That is not really surprising. What was surprising, to me at least, were one out of six deals per the report do not get done because the acquiring company can't find a suitable target. That means they are all dressed up and ready to go, but can't find a mate. This I found fascinating. There are no lack of targets. There is simply an inefficient system to put them together in a timely and cost effective manner.
Hence, the M&A Forum. When we open up searching, shortly, we will have over 50 companies listed for sale from principals and intermediaries, from multiple countries, varying in size from $1M in revenue to nearly $40M, and in value from little, to nearly $75M. BTW, did we say yet our list of buyers, including strategic acquirers, private equity/venture capitalists, and international companies now measures in the hundreds? We will be making a more formal announcement as we exceed a certain retail figure. Happy selling.
marty