A ShareVault blog post today quoted a statistic that supports what we’ve been saying about the abundance of money looking for good companies to buy. Their quote:
“According to data provider Preqin, private-equity funds currently have over $1.46 trillion in uninvested capital. That’s up from $1.39 trillion at the end of 2015. And with large public companies looking to grow through acquisitions, many companies have decided that the best exit plan might be a sale.”
A sale today of a company in top notch shape will likely yield a premium price for the seller. Buyers need to put all that money to work or give it back to their investors. The operative words are “in top notch shape” and the trick is getting there and staying there long enough that it’s perceived as part of the culture of the company, i.e. not an accident or momentary event. That means building an infrastructure that supports best-of-breed operating practices and attracting employees who are themselves comfortable in that kind of environment. Our specialty is producing a finance department that matches that description, and helping CEOs learn how to use their financial resources most effectively.
You should call us. We can help. 888.788.6534.