Dr John Binkley

Generational Equity Highly Ranked by Thomson Reuters

February 23, 2018 By Dr John Binkley - Generational Equity

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 Dr John Binkley - Generational Equity

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 Dr John Binkley - Generational Equity

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.