When Dr. John Binkley first founded Generational Equity, his goal was to provide the most comprehensive support to middle market business owners by helping them understand M&A processes and assisting them in successful exits from their companies.
While much has changed and grown over the years, that vision has remained the same. For this reason, the 2017 Small Cap M&A Advisory Rankings, compiled by Thomson Reuters, are especially pleasing for Dr. Binkley.
In this piece, Dr. Binkley reflects on Generational Equity’s rankings from Thomson Reuters, what it means to the firm, and what he expects for the organization and the M&A industry in 2018.
Generational Equity Sealing Deals in the Middle Market
Every year, Thomson Reuters gathers data on the number of deals completed by M&A advisory firms in a range of values. The Small Cap Rankings cover disclosed values of up to $10m, $25m, $50m and $100m.
Dr. John Binkley was delighted to receive their 2017 edition, which featured Generational Equity in prominent positions in all four categories. Generational Equity was ranked the top M&A advisory firm for the number of deals completed up to both $10m and $25m. During a year of remarkable M&A activity worldwide, this was especially satisfying.
Furthermore, Generational Equity was also ranked second for deals completed up to $50m and $100m, demonstrating the firm’s expertise across all tiers of the lower middle market. In these categories, Generational Equity ranked above several other well-known names in the M&A industry, including Goldman Sachs, Jeffries LLC and JPMorgan.
However, what pleases Dr. Binkley most is how consistently Generational Equity has established a presence in these important rankings. It has been the top-ranked M&A advisory firm for the number of deals concluded up to $10m and $25m for years, according to Thomson Reuters.
It is this consistency that has cemented Generational Equity in a crowded field of firms, and demonstrates how many business owners trust the firm to manage and support their exit from their company.
These rankings were the ideal way to cap off a stellar 2017 for Generational Equity, a year that Dr. Binkley will hold long in his memory. In the midst of a strong seller’s market, the firm completed their 600th transaction, broke their record for deals completed in a calendar year, and were named Investment Banking Firm of the Year by The M&A Advisor.
Of course, while these milestones, moments and accolades are wonderful – and certainly something Dr. Binkley is always pleased to receive – it is not what drives Generational Equity’s approach. It is just a welcome outcome; the true objective is to provide unrivalled guidance to business owners looking to monetize their largest asset.
That is what makes these rankings by Thomson Reuters especially pleasing. It is an indication that more and more business owners are approaching Generational Equity to guide their exit strategy and find the ideal buyer for their company. It also demonstrates the firm’s proficiency in facilitating these negotiations and closing deals that all parties are satisfied with.
This is the true source of enjoyment for Dr. Binkley – the knowledge that his organization is conducting their work in the right way and that middle market business owners, throughout the U.S. and Canada, are reaping the benefits.
What Does 2018 Hold for Generational Equity?
So, after a standout 2017 for Generational Equity, what’s in the pipeline for 2018? In Dr. John Binkley’s eyes, there is plenty of optimism that this year could be even more noteworthy for the firm, as well as for M&A activity in general.
That is because there are no signs that the strong seller’s market that encouraged deal activity last year will be slowing in 2018. There are several key factors present that are powerful indicators that now is an ideal time for deal-making, including:
- A positive economic outlook
- Low borrowing cost
- Significant dry powder among private equity firms
- Tax reform legislation
The tax reform could be particularly pivotal, as this wasn’t a factor in 2017. The dramatically reduced corporate tax rate, cut from 35% to 21%, provides more cash on the bottom line for companies across the country. This will undoubtedly incentivize professional buyers to aggressively pursue acquisitions in the interest of business growth.
Furthermore, as Dr. John Binkley previously discussed in his analysis of the latest Middle Market Indicator from the National Center for the Middle Market, business owners in this bracket are expressing near-record levels of confidence in the economy and their prospects for growth.
Therefore, at least in the middle market, everything is pointing towards this year’s M&A activity being at least on par to 2017’s, and arguably could be primed to surpass this. While this certainly isn’t guaranteed, it is a promising scenario that the entire team at Generational Equity is excited about.
Hopefully, this overall optimism among M&A experts, as well as the boost to buyer activity, will encourage middle market business owners to at least consider their options. That doesn’t necessarily mean selling a business or exiting entirely, but considering how they can use mergers and acquisitions to grow their company.
Want to Contact Generational Equity for Advice?
If you would like to learn more, contact Generational Equity to discuss this with the firm’s experienced dealmakers and advisors. Alternatively, you can attend their complimentary executive conferences, which are held throughout North America and offer a great insight into how M&A benefits a business and what goes into a successful exit strategy.
Plus, if you’d like to learn more about what the firm anticipates for M&A activity in 2018, Dr. Binkley recommends the following articles:
- What is the M&A Environment for 2018?
- M&A Deal Flow in 2018
- 2018 Will Be a Great Time to Sell a Business
- Dealmakers Expect 2018 M&A Market to Remain Strong
To conclude, Dr. Binkley has high expectations for 2018, both for mergers and acquisitions generally, and for Generational Equity to build on 2017’s success. He also hopes that business owners and professional buyers enjoy similar success for the remainder of this year.
Discover more about Dr. John Binkley by clicking here.
