It may be counter-intuitive in light of the world-wide pandemic we continue to experience but, like the housing market in the United States, the market for buying and selling businesses is robust in 2021. One explanation for the increased amount of merger-and-acquisition activity is the near-zero interest rates. Cheap money allows prospective buyers to finance purchase opportunities they otherwise would not be able to afford. Another factor is the relatively high prices for equities. Stocks are trading at record high ratios of price-to-earnings. Private equity firms and the industry players they back are looking for places to put their money to work other than the stock market. Whatever the reason, clients of NavBat have been happy participants.
“We have seen a whirlwind of activity in 2021,” founding partner Dan Navigato reported. “I have helped close 6 transactions in the last 6 months,” and the deals have ranged from the high six figures to the mid-eight figures. Navigato adds, “I’m not the only one helping our clients buy and sell businesses. Mike [Battin] has notched another 5 transactions this year.” The businesses that have been bought and sold are not limited to one or two industries. Rather, the transactions the attorneys at NavBat have closed include businesses in the automotive sector, the professional services sector, the manufacturing sector, and the construction industry, to name a few.
“Due to the increased demand, it is definitely a business seller’s market,” Navigato explains. “It’s like nothing I’ve seen before in nearly 30 thirty years as an attorney. Sellers are able to name their price, negotiate favorable payment terms, and limit their post-closing obligations and exposure.”
If you or your company need assistance in buying or selling a business, contact the attorneys at Navigato & Battin. They have the knowledge and experience to assist you in completing a smooth transition from the letter of intent stage to the closing.