Companies Report Confidence in Economy

From the Desk of Ryan Binkley

I hope that 2018 has started out well for both you and your business!

Despite recent stock market volatility, most economists that we track are predicting continued economic growth in 2018. In fact the National Center for the Middle Market, a leading research organization tracking middle market U.S. based companies just released their quarterly economic update based on survey’s they distribute.

Overall, based on business owners they survey, the NCMM expects 2018 to be another strong year of growth. Our lead article in this month’s newsletter examines their findings in detail.

All their analysis is extremely valuable but what really struck me was this data:

  • 69% would put an extra dollar of revenue to work immediately through investment, primarily through new plants and equipment, or IT improvements or upgrades.

This information is really telling. Because although not mentioned specifically, the fastest, most efficient way to grow a company (adding new plants and equipment) is via acquisitions. This is really important to consider as you look at your exit plans over the next few months. Buyers are quite active right now. The new tax law has provided more capital for acquisitions, and sellers have significant leverage in the market today.

Please remember that your relationship with Generational Equity doesn’t end once our initial evaluation is completed on your company. We provide you with two updates of value at no additional cost over a five-year period. If your business is performing better now than it was a few years ago, it might be a good idea to contact us to review your company’s current business enterprise value.

Keep in mind that in addition to a value update, we also will provide you with our Roadmap for Enhancing Value, a document that is designed to give you ideas on steps you can implement to build the enterprise value of your business over time. Our clients find this tool extremely helpful as they focus on growing their business for future acquisition.

If you are interested in updating your company’s valuation, if you would like to make an informed decision about your options in the marketplace, or have any questions for us at all, Chief Experience Officer, Jay Hellwig, at 972-232-1156, or send Jay an email at jhellwig@generational.com and he will be in touch.

Thank you for your time and I wish you all the best for 2018,

Ryan Binkley
President & CEO
Generational Equity
http://www.generational.com