Last week the Wall Street Journal hosted the Middle Market Network to discuss issues relevant to middle market firms in the US. The good news is that middle market companies are getting healthier. With an increase in M&A activity and a boom in the construction industry, middle market businesses are growing and CEO confidence is […]

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Capstone Strategic’s survey of middle market executives shows most see the same (43%) or growing (31%) M&A activity in their industry. 47% are pursuing M&A in order to access new markets. Capstone Strategic, the leading M&A advisory firm for the middle market, surveyed middle market executives from multiple industries on their growth and M&A experience […]

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Middle market companies have faced many challenges to growth, but the tide is now turning. Previously, we had observed the dumbbell effect, where at either end of the spectrum massive corporations and small businesses flourished while middle market companies were caught in between. Unlike large multinational corporations, many middle market companies cannot leverage the same […]

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Middle market deal activity reached its lowest level since 2009, according to Mergers & Acquisitions. This may be a result of concerns about the upcoming U.S. presidential election and because banks are shying away from lending to private equity-backed deals. While middle market M&A activity is down, when compared to 2015 levels, the middle market […]

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Capstone’s survey of middle market executives shows 53% likely to pursue mergers and acquisitions in 2016 compared to 41% when last surveyed. Capstone surveyed middle market executives from multiple industries on their growth and M&A experience in 2015 and their outlook for 2016. The survey was conducted in December 2015, and followed a previous survey in 2014. […]

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Instead of investing in growth, companies this year have been holding more than $1.4 trillion in cash – close to a record $1.65 trillion in 2014. Oracle’s $56 billion cash stockpile is 1.5 times its sales and Cisco’s $60 billion in cash is 1.2 times its sales. Eleven companies have cash reserves double their annual […]

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The top five deals announced in Q1 2015 were all well above $10 billion. In comparison to last year, the number of mega deals announced, or acquisitions over $5 billion, doubled. Last year there were 14 mega deals in the first quarter and this year there were 28. Despite the record-breaking activity of Q1 2015, […]

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Capstone’s State of Midmarket M&A Q1-Q3 2014 Update indicates a steady growth in midmarket mergers and acquisitions. We surveyed midmarket executives from multiple industries to learn how the first nine months of 2014 matched expectations from 2013, and to indicate any new trends in midmarket M&A. The survey was conducted in October 2014, and follows a […]

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With a 70% failure rate for acquisitions, it seems like the odds are against you from the beginning. Before you get scared off, however, let’s take a closer look at what that 70% means. The 70% failure rate is mainly based on large, publicly traded transactions because large transactions must be reported to the SEC, […]

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Midmarket deal flow expanded at the fastest rate in six months, according to a study conducted by Mergers & Acquisitions in April. The survey has positive implications for midmarket growth. As I’ve mentioned previously on my blog, midmarket companies have faced increased competition from larger players and small mom and pops.  Faced with this “squeeze,” it’s […]

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A minority of investors have expressed concerns that midmarket activity may actually slow down in 2014, compared with 2013 activity levels.  Growth in the middle market may plateau for a few reasons all of which hinge on uncertainty in the economy including sequestration and the ongoing open-discussion over the U.S. debt ceiling. Health-care reform costs […]

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What will 2014 look like for mergers and acquisitions? While no one knows what the future holds, I see these three trends continuing: 1. Increased middle-market M&A Middle-market companies are the primary driver of economic activity in the U.S.  With favorable market conditions, expect an uptick next year. A survey by Mergers & Acquisitions  showed […]

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Last week, Sysco announced it would buy rival US Foods for nearly $3.5 billion. Sysco is already a huge player in the food industry with customers ranging from the US military to schools to five-star restaurants. This deal brings together the two largest food distributors in the US, increasing Sysco’s share of the food distribution […]

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As you move from developing the strategic foundations for growth to implementing your growth plan, think about the different pathways to growth. Choosing the right pathway for growth is considered to be the heart of business. In the Association for Corporate Growth (ACG)  blog, I outline some of the strategic pathways you can take for growth, […]

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