Blog | Dr. John Binkley Generational Equity Chairman

Generational Equity Highly Ranked by Thomson Reuters

February 23, 2018 By John Binkley

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 600^th 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:

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.

Why Middle Market Businesses Should Capitalize on M&A in 2018

February 9, 2018 By John Binkley

You are probably well aware that 2017 was a strong year for the middle market, both in regards to company growth and mergers and acquisitions (M&A). Dr. John Binkley was fortunate to witness this up close in his role as Chairman of Generational Equity, an M&A advisory firm that enjoyed a record-setting year for deals completed.

However, you might be unsure if this positivity will continue into this year. Fortunately, Dr. Binkley firmly believes 2018 will not only maintain this growth for middle market businesses, but has the potential to improve it.

Here, you will understand why this year will be an excellent one for middle market companies, and how effective use of M&A will help owners reap the full benefits of this buoyant period.

Why It’s Great to be a Middle Market Business Owner in 2018

“For the middle market, 2017 can be summed up as a year of strong growth in both revenue and employment.” – National Center for the Middle Market

In their quarterly Middle Market Indicator (MMI), the National Center for the Middle Market outlined the growth and optimism within this vital segment of the U.S. economy. Favorable conditions in 2017 encouraged growth across all industries, both with regards to revenue, employment and confidence:

Companies ended 2017 with year-over-year revenue growth of 7.6% (second-highest rate in MMI’s history)
A 5.2% increase in headcount among businesses, with over half of all middle market firms adding to their ranks
Local economy confidence at 88%, with national economy confidence close behind at 86%

The fruits of 2017, combined with the pivotal tax reforms confirmed in the year’s final months, mean middle market leaders are increasingly confident for 2018. Dr. John Binkley has met with owners who have reached out to Generational Equity, sharing this optimism. In summary, the middle market is booming right now.

Of course, when conditions are this good, it is all too easy to rest on your laurels. So, it is especially exciting that this confidence has encouraged business owners in the middle market to invest rather than save:

“The proportion of firms that would invest extra money as opposed to hold it remains near peak levels.” – National Center for the Middle Market

Dr. Binkley sees this as great news as, despite the overwhelming confidence among business owners, there are certainly areas of concern that need to be addressed. Talent management and market competition remain key challenges that middle market owners are trying to overcome.

This is where strategic investment in M&A activity, with the right advisors behind you, can help entrepreneurs benefit to the absolute fullest.

Utilizing M&A Activity in the Middle Market

The most recent Citizens Commercial Banking Middle Market M&A Outlook has indicated an increasing interest among middle market business owners for M&A. 56% of sellers are either currently involved in or open to M&A activity in 2018, which coincides with a boost in buyer confidence.

If there’s one thing Dr. John Binkley was certain to include in the M&A advice that Generational Equity offers to middle market owners, it’s that good timing is essential.

That’s why the firm encourages that you always build your business with a buyer in mind – it allows you to capitalize when the market is thriving (like right now) – and not miss out on an optimal deal.

What makes 2018 such a great time to consider M&A activity in the middle market? As previously mentioned, buyer confidence is extremely high, with investors sitting on a record amount of dry powder that is just waiting to be invested.

All these facts combined means buyers are on the lookout for opportunities – if your business is prepared, you have a better chance of receiving a premium offer for your company.

In addition, the pro-growth provisions contained within the recent tax reforms will undoubtedly encourage investment:

“There is tremendous sentiment that M&A activity in the middle market will surpass 2017 levels this year. Both the size of deals and the quantity of those deals will likely be much higher, as both sellers and acquirers look to take advantage of the act’s pro-growth provisions. It is important to realize all of the benefits and potential hurdles the act contains so that all parties will benefit from their transactions.” – Gary Wallace, Mergers & Acquisitions

As Dr. Binkley and the team at Generational Equity regularly remind company owners, M&A activity does not necessarily mean the definitive sale of your business. On the contrary, the sale of certain assets or introduction of investors could be the key to securing the capital to combat the challenges of talent management and industry competition, which as mentioned earlier are prevalent problems facing middle market companies.

Of course, if you are ready to sell your business, these conditions are equally ideal. With confidence high and capital available, your middle market company could fetch a premium price from interested investors.

To ensure that end result is achieved, Dr. Binkley encourages you to reach out to experienced M&A advisors, such as Generational Equity. Good timing is essential, but without the knowledge or tools to locate buyers and build your business valuation, you are less likely to receive the optimal return on investment for the years spent growing your company.

What will 2018 mean for your Middle Market Business?

On the whole, Dr. John Binkley predicts 2018 will be a great year for business owners in the middle market. The optimism in the national and global economies, combined with exceptional company growth in 2017 and new tax legislation, has led to a consensus of positivity.

This will be especially true for middle market business owners who make effective use of M&A over the next 12 months, either to generate capital to invest in growth, or exit their company for a return that secures their – and their family’s – financial legacy.

If your business operates in the middle market, Dr. Binkley hopes these projections prove to be true, allowing your company to grow and unlock its true potential.

Would you like to learn more about how to approach middle market M&A? Generational Equity has many articles on the subject, providing you with an insight into what you need to consider in order to sell for the optimal price. In a year such as this, information like this will prove invaluable to your business’ growth.

You can also read more of Dr. John Binkley’s views and advice on M&A, business leadership and spiritual growth on his website.

My New Year’s Resolution: A Better Relationship with God in 2018

January 11, 2018 By John Binkley

The first month of a new year is always notable for one thing: New Year’s Resolutions. While they are incredibly easy to make, they are notoriously hard to keep, whether your goal is to lose weight, quit smoking, or start a new hobby. For Dr. John Binkley, one element of his New Year’s Resolution lists is ever-present: cementing a better relationship with God.

Dr. Binkley has written in the past on how to pursue and maintain a fellowship with God, and explained why this is key to fulfilling His plans for you, be they in business, in life, or in spirit. Dr. Binkley was blessed to enjoy success in all three of these areas during 2017.

His company, Generational Equity, had a standout year, from being named Investment Banking Firm of the Year by The M&A Advisor, to having the pleasure of sponsoring several charity events. Dr. Binkley’s son Ryan was pivotal in this development, highlighting the strength of family ties in Generational Equity’s progress.

Finally, Dr. Binkley was honored to continue his work with numerous faith-based organizations. Whether it was participating in missions across the globe, or speaking at Ryan’s Create Church, he continuously strengthened his relationship with God. But, that doesn’t earn you a year off – it is an ongoing process. So, how can you have a better relationship with God in 2018?

Connecting to God

One prominent faith-based organization Dr. John Binkley works with is Here’s Life Africa. In his role on the Board of Directors, he was delighted with its productivity in 2017, including the launch of their first Grace Works Conference in October. In their efforts to continue this in 2018, Here’s Life Africa has shared advice on how to better connect with God this year.

Firstly, Here’s Life Africa President Andy Blakeslee encourages you to think of faith as a tire. As you drive on your journey with God, your spiritual tires may start to deflate. Andy knows a lot about this, as Here’s Life Africa’s ministry teams endure nearly 100 literal flat tires a month travelling across the continent.

But, they have become skilled in repairing these, in the same way you can be skilled in inflating your spiritual tires. For Dr. Binkley, keeping these fully filled is key in discovering God’s perfect plan for you in 2018.

Furthermore, Here’s Life Africa have provided these 10 discipleship questions to ask yourself during the year, to help you maintain devotion to God:

What is your Bible reading plan for 2018?
Which specific steps will you take to love your family better?
What lost person(s) will you pray for?
Who will you disciple in 2018?
What sin(s) do you need God’s help to overcome?
How will you improve your prayer life?
When will you fast?
What mission(s)/project(s) will you support?
How much will you give churches/missions financially?
Will you recommit to following God despite sacrifice/cost?

Dr. John Binkley would like to highlight two of these in particular: Bible reading plans and prayer schedules. There are specific actions you can take to improve both in 2018, thus strengthening your relationship with God.

Research conducted by LifeWay discovered that just 20% of Americans polled have read all of the Bible at least once. If you would like to improve your reading habits, try:

Committing to read a chapter a day so you don’t overwhelm yourself immediately
Using a Daily Walk Bible for support, using the New Living Translation for easier understanding
Taking advantage of helpful devotional tools, like Sarah Young’s Jesus Calling

With regards to prayer guidance, perhaps consider make a list of everyone in your life, and jot down what prayer requests to make for each of them? Tim Keller’s Prayer: Experiencing Awe and Intimacy with God is a useful tool to support your journey.

This is just a glimpse into ways you can have God’s presence in your life during 2018. There are many approaches to consider, from asking Him to focus on a word or trait in your prayers, to prioritizing thankfulness every day. If you’d like to learn more about finding your place in God’s vision, Dr. John Binkley’s Character is King offers a valuable guide.

Your Relationship with God in 2018

Dr. John Binkley hopes you are focusing on your relationship with God in your New Year’s Resolutions for 2018. He is already looking forward to future travels with Here’s Life Africa and other faith-based organizations, alongside his efforts to continue Generational Equity’s growth and other personal endeavors.

Whatever your goals are in 2018, Dr. Binkley wishes you nothing but the best in accomplishing them. Connecting to God will certainly help you in those aims, as through Him you will have the motivation and wisdom to discover His vision for you.

If you’d like to learn more about the work done by Here’s Life Africa, visit their website. In addition, check out Dr. John Binkley’s YouTube channel for several sermons conducted at Create Church in Richardson, Texas.

Christmas Lunch & Core Values at Generational Equity

January 3, 2018 By John Binkley

One quality Dr. John Binkley has always been keen to reinforce at Generational Equity is unity. This spirit of unity helps to ensure the firm’s 200+ strong team of M&A professionals are motivated, comfortable and working towards a common goal – the well-being of clients.

This was supported throughout 2017, culminating in Generational Equity’s Christmas Lunch event on Friday, December 15 at the Renaissance Dallas at Plano Legacy West Hotel.

As Founder and Chairman of Generational Equity, Dr. John Binkley was delighted to attend the event with his entire family, including his son Ryan, the organization’s President and CEO. It was a great opportunity to reflect on what had been a positive year for the firm, as they continued to strengthen their position as one of the preeminent M&A advisory firms in North America.

Core Values – The Generational Way

Dr. John Binkley watched on as his son Ryan, Heath Flock (COO) and Terry Johnson (CRSO) led a dynamic presentation to Generational Equity’s staff.

They recapped the accomplishments of 2017, including success at the 16^th Annual M&A Advisor Awards, where Generational Equity was named Investment Banking Firm of the Year, and the completion of the firm’s 600^th deal back in July. They also highlighted what the team can look forward to in 2018.

Outside of this review of past achievements and preparations for an exciting future, Ryan focused on sharing stories that tied into Generational Equity’s core values, values that underline everything the firm stands for. These five values constitute “The Generational Way”. These are:

Golden Rule
Unity
Integrity
Diligence
Excellence

These act as Generational Equity’s GUIDE to successful client relationships and effective exit planning.

Generational Equity’s Golden Rule is to treat clients and staff with the same respect and responsible stewardship as you would expect yourself. Dr. John Binkley champions this a great deal, as clients entrust Generational’s team with their most valuable asset – their business.

It is important that dealmakers and advisors are empathetic towards their concerns and treat them in the best possible manner.

As previously mentioned, unity is a key quality – Generational Equity’s staff work effectively together, and through deep research and communications they create strong bonds with clients to work towards a single goal.

This is complimented by a promise of integrity. Dr. Binkley has always held Generational’s team to an unbreakable code of ethics, a code that protects the best interests of clients and forges an ironclad degree of trust.

In the M&A industry, diligence is essential. Dealmaking is often far from straightforward; it often takes months to finalize an acquisition. That is why Dr. Binkley prioritizes diligence in building the right deal for clients at Generational Equity.

Last, but certainly not least, is excellence. Generational’s team strives for the best in every category. This helps clients to reap the rewards of exiting their business.

Generational Christmas Lunch

After this presentation, Dr. John Binkley joined the team for the Christmas Lunch. As everyone enjoyed a hearty meal, Ryan randomly drew table numbers so people could receive gifts for a year of hard work.

Gifts included Nutribullets, digital picture frames, food from Omaha Steaks and much more. Following a year that Generational Equity had much to be thankful for, it was the least the team deserved for their efforts.

Alongside the great gifts and delicious food, the team enjoyed live music, amazing decorations arranged by HR, and time to chat with other staff in a relaxed, comfortable setting. It was the ideal round-up for 2017, a year where new records were set and great relationships established.

Now, Dr. John Binkley is looking forward to a promising 2018 for Generational Equity. We’ll be sure to keep you updated on developments here on this blog, as well as on Generational’s Insights page.

You can also find out more about Dr. John Binkley here.

Generational Equity in 2017

December 14, 2017 By John Binkley

As 2017 draws to a close, it is a good time to reflect on what has been a remarkable year, especially in the M&A industry. As Chairman of Generational Equity, Dr. John Binkley has kept a close eye on undoubtedly one of the strongest seller’s markets in history, which has been driven by several factors, including:

Excess capital chasing too few deals
More baby boomer business looking to sell their companies
Greater confidence in the economy
Increased private equity fundraising

This was particularly present in the middle market, which helped make 2017 a memorable year for Generational Equity. Dr. Binkley is delighted with the firm’s growth over the past 12 months, where records were broken, awards were won, and strong relationships with clients were forged. It is a testament to the dedication of its skilled team of M&A professionals since Dr. Binkley founded the firm, now established as one of the leading firms in North America.

A Year of Recognition for Generational Equity

One of the highlights for Dr. John Binkley was unquestionably being able to attend the 16th M&A Advisor Awards ceremony in November at the Manhattan Club in New York City. It has been a regular fixture for Generational Equity’s team in recent years, but it is always an event the company is extremely grateful to be part of. For the second year in a row, Generational Equity was named Investment Banking Firm of the Year. This was the showpiece of four awards won on the night, as well as the awarding of the inaugural Thomas Farrell Memorial Award in memory of a friend and key member of Generational Equity’s development.

While this event was a great moment for the firm, what Dr. Binkley was principally proud of was Generational Equity’s consistent support for clients all year round. This resulted in the conclusion of the firm’s 600th deal at the end of June, and set up the firm to surpass their record number of deals completed in a calendar year. As such, Dr. Binkley is confident Thomson Reuters will once again rank Generational Equity as one of their leading M&A firms in January, marking the ninth year in a row.

That is not all, as the firm is also closing in on $4 billion in wealth generated for clients; a remarkable feat for firms exclusively serving the lower middle market. In the years since establishing Generational Equity, Dr. Binkley is very grateful for the support of its team in pursuit of this milestone.

2017 and Beyond for Dr. John Binkley

Dr. John Binkley was thankful for the opportunity to spread God’s Word throughout 2017 in a variety of settings. Dr. Binkley had the chance to travel to several countries, including Tanzania as part of Here’s Life Africa, as well as participate in its first Grace Works Conference in October. He was also pleased to perform sermons at his son Ryan’s services at Create Church in Richardson, Texas.

So, what does the future hold for 2018? Dr. Binkley shares the confidence of other M&A analysts that the strong market will continue into the new year. This bodes well for Generational Equity’s sustained development, and opens more opportunities for business owners that are interested in exiting for maximum value. Hopefully, this vibrant seller’s market lasts for the foreseeable future, giving Generational Equity the chance to fulfill the financial ambitions of more and more entrepreneurs.

If you’d like to learn more about Generational Equity’s services for business owners in the lower middle market, visit their website. You can also read more about Dr. John Binkley in his “About” section.

Join in the Festive Fun at the Generational Group Dallas Jingle Bell Run

December 6, 2017 By John Binkley

December is the merriest month on the calendar, and Dr. John Binkley hopes that everyone experiences a lot of holiday cheer in the coming weeks. Christmas is a time for family togetherness, brotherhood and celebration of our Lord, as well as a time for giving. As Proverbs 18:16 states:

A gift opens the way and ushers the giver into the presence of the great.

While this is an attitude you should take 365 days a year, the holidays are a notable time to think of those less fortunate and help those in need. Dr. Binkley is looking forward to spending quality time with his family, reflecting on another successful year for the Generational Group, and of course, the annual tradition that is the Dallas Jingle Bell Run.

For the fourth year in succession, Generational Group is delighted to be the title sponsor for this over 20-yearslong pastime, taking place on Thursday, December 21, 2017. Dr. John Binkley is honored that his company is now firmly tied to an event that champions family spirit, supporting others and has plenty of festive fun. Here, Dr. Binkley shares why Dallas residents should get involved in this spirited spectacular.

Why You Should Join The Dallas Jingle Bell Run

The centerpiece of the Dallas Jingle Bell Run is the nighttime 5K race and 1-mile fun run. With races commencing from 6:30 pm, participants are encouraged to come dressed in their best holiday attire, and will be given a pair of jingle bells and glow sticks to light up the streets of Dallas throughout the evening. Plus, there’ll be carolers and music throughout the course, as well as plenty of Generational Group’s team in tow.

One thing that Dr. John Binkley is especially thrilled about is how inclusive this event is. Children aged 10 and under are in a separate chip timing category from adults, and there will be a post-race prize for Most Festively Dressed Dog. So, whether you walk on two legs or four, you’re more than welcome to take part in the fun run festivities.

Plus, there is the always exciting post-race party – the perfect way to unwind after the nighttime run. Held at the Hilton Anatole’s Chantilly Ballroom, this year will feature a live performance by the Spazmatics, appearances by the Mavs Maniacs, photos with the Dallas Mavericks Dancers and plenty of adult and kid-friendly refreshments. For Dr. Binkley, this annual experience is a great blend of fun, fitness and festivities, and something Generational Group is grateful to be part of.

Raising Money While You Run

As mentioned earlier, the holidays are an ideal time to spread festive cheer to those in need, and both Generational Group and the Dallas Jingle Bell Run share this spirit of giving. Dr. John Binkley is delighted that all proceeds from the event will be going toward the Trinity Strand Trail and the Mavs Foundation, two wonderful organizations.

The Trinity Strand Trail is dedicated to connecting trails, neighborhoods and communities across Dallas. Located at the heart of the city’s Design District, since 2002 the project has been steadily enhancing trails for hiking and biking, with the goal of connecting over 73 miles of trail.

The Mavs Foundation is affiliated with the Dallas Mavericks basketball team, using its unique platform to empower Dallas’ youth, women and families through financial support, advocacy, and service. As someone who recognizes the value of family, Dr. John Binkley is firmly behind associations that aim to strengthen their foundations. The Mavs Foundation generated over $3.5 million to non-profit organizations in the past 20 years, including those focused on foster care, victims of domestic abuse and family homelessness.

Ready to Run?

There is still time to sign up for this yearly celebration, and Dr. Binkley urges everyone to get involved in any capacity. Whether you’re ready to run the streets of Dallas, partake in the post-race entertainment, or volunteer, you can discover how you can join here.

Of course, if you can’t attend, you can also make a donation on the website.

Dr. John Binkley is the Founder and Chairman of Generational Group, the title sponsor for this year’s Dallas Jingle Bell Run. Discover more about the firm on their website, and you can learn more about Dr. Binkley here.