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Happy Friday and welcome to another edition of Axial Radar!
Every buyer of small and medium businesses will have their own prioritized laundry list of diligence items for assessing new investment opportunities. The order of those items in any given year can tell you a lot about macro trends and how they impact the private capital markets.
Labor shortages, as an example, are a trend that we’ve heard a lot about anecdotally from our members since the beginning of the pandemic. It’s no surprise that in Q2 of this year, employee retention ranked as the number one due diligence priority for businesses generating sub $2M of revenue, and third in businesses generating between $2M and $50M (financials and revenue ranked 1 and 2 respectively). Head over to this week’s featured Industry Trends article to read more about what’s top of mind for SMB buyers and how that’s evolved in tandem with today’s macroeconomic trends.
Our featured buy-side members this week include a third generation family office, a global PE firm headquartered in Korea, and a private investment firm targeting SMBs in the business services, healthcare, and software space. On the sell-side we’ll introduce you to a 30 year old M&A advisory firm and a full service advisory firm servicing businesses of all sizes, from start ups through middle market companies.
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