NEW YORK, Nov. 11, 2014 /PRNewswire/ -- ACG New York, the largest association of middle market deal making and corporate professionals in New York, announced today new results from its Annual Middle Market Survey, which found that middle market deal makers anticipate an uptick in baby boomers selling their businesses in the next three to five years. The survey is based on responses from more than 200 ACG New York members who are leading dealmakers in the middle market.
The recently conducted survey found that almost three-quarters (74 percent) of respondents believe there will be a slight uptick in baby boomer business sales, while nearly one-fifth (18 percent) believe there will be a dramatic increase in the near future.
When asked for the top reasons deal makers believe there will be an uptick in baby boomers selling their businesses, more than one third (36 percent) believe this is due to a lack of a succession plan, familial or otherwise, 28 percent believe it is due to retirement, and nearly one quarter (24 percent) attribute this uptick to strong valuations and it being a sellers' market. Only 12 percent attributed a potential sale to estate and tax planning.
"ACG members, who have their fingers on the pulse of the middle market and deal making trends, overwhelmingly believe that we are on the brink of entering a robust period of M&A activity, propelled by a generational shift of baby boomers looking to sell their businesses," said Martin Okner, Chairman of ACG New York. "Not only do our members predict this trend to be sustainable, because we're in the midst of a sellers' market, they expect baby boomers to benefit handsomely for their hard work and success upon exiting these businesses."
The majority of respondents, 75 percent, believe that high valuations are mostly a result of a great deal of money chasing fewer high quality deals, making this a great market in which to sell one's business.
If you are interested in receiving full survey results, please contact: [email protected].
This survey was conducted online and at ACG New York events on behalf of ACG New York between September 24, 2014 and October 1, 2014. There were a total of 218 participants, both male and female who work in the middle market. Full survey data is available upon request.
About ACG New York
ACG® New York, Inc., the founding chapter of The Association for Corporate Growth, is the largest association of middle market deal making and corporate professionals in New York, with more than 1,000 members across all industry sectors. ACG New York facilitates long term relationship building, driving middle-market growth. ACG's members are focused on investing private capital, which benefits the pension funds held by municipal workers, fireman, policeman, health workers and others that provide years of service for the public good.
SOURCE ACG New York