IAG LLC Carrollton has been in the merger and acquisition industry long enough to know what factors point to success and which factors point to a drought. IAG LLC Carrollton believes there are as many as seven driving forces for a strong merger and acquisition market in the United States.
Those factors are as follows: strong divestiture activity, reasonable valuations, improving economy, low interest rates, strong cash reserves on corporate balance sheets, private equity firms with a backlog of exits, and a strong appetite for business growth. IAG LLC Carrollton would like to discuss a few of these in more detail.
Strong Cash Reserves – Having a large number of companies with strong cash reserves on their corporate balance sheets is very important. It can sometimes be hard to obtain financing for a merger or acquisition, so IAG LLC Carrollton believes it is nice to have some of the funding on hand. It is also important to have some cash reserves to take care of the necessary things that will take place after the transaction is completed.
Appetite for Growth – Without a national appetite for business growth, it is unlikely that there will be a strong merger and acquisition market. IAG LLC Carrollton has seen some of the coldest periods in the market come when businesses are simply satisfied with where they currently are.
Reasonable Valuations –– IAG LLC Carrollton knows that nothing kills potential deals like unreasonable valuations. IAG LLC Carrollton points out that reasonable valuations of businesses create trust in the marketplace. This in turn encourages more activity.
By looking at these three driving forces, and the other four mentioned above, IAG LLC Carrollton believes they can accurately predict hot and cold periods in the market. That is why IAG LLC Carrollton is among the best in the merger and acquisition industry.
Iag LLC Carrollton 