The Middle Market Review Insights on the Middle Market.

Subscribe Subscribe

Subscribe Today

Please provide valid email address

I want to receive:

Thanks for subscribing!

Axial Radar: When Financial Buyers Turn Strategic

Tags

Axial Radar
 

Click here to subscribe to Axial Radar.

Happy Friday and welcome to another edition of Axial Radar!

Private company valuations have remained quite high despite the reckoning taking place across the rest of the capital markets. Good news for strategic acquirers.

Strategics tend to flourish in inflated valuation environments – they’re able to move quicker than their financial counterparts and have shown a tendency to overpay in competitive bid processes. That age-old dynamic, however, is slowly beginning to change, and it’s in no small part due to add-on investments.

Accounting for nearly one fifth of all private equity deal volume over the last five years, add-ons are effectively transforming PE buyers into strategic acquirers. In this week’s feature Industry Trends article, we take a look at a report focused on trends in add-on investments. Based on a survey of more than 150 deal professionals, the report covers topics such as the objectives that are most important for buyers pursuing add-ons, valuation expectations, and the challenges of successfully executing add-ons. Scroll down to the bottom of the newsletter to access a free copy of the report.

Our featured buy-side members this week include a PE firm focused on the aerospace industry, a private investment firm backed by former business operators and owners, and a strategic in the metal finishing industry. On the sell-side we’ll introduce you to a leading Mexico-based financial advisory firm and an independent, middle market, private investment banking firm.

Click here to follow Axial on LinkedIn and stay up to date on the latest trends in the world of Lower Middle Market deal making.


Axial

Featured Members

Mustang Entrepreneurs

Mustang Entrepreneurs
Private Equity Firm

Mustang Entrepreneurs is focused on small to medium sized aerospace acquisitions. The firm’s approach is to find U.S. based aerospace businesses to invest in and grow. The team at Mustang does this by capitalizing on their operational experience and industry knowledge acquired from starting and growing a multi-unit aerospace firm, bringing a rare combination of entrepreneurship, leadership, and finance experience to each deal.

View Profile


i-Structure

i-Structure
Investment Bank

i-Structure is a leading Mexico-based financial advisory firm targeting Small and Medium Enterprises (SMEs). The firm assists corporations with a variety of financial consulting activities including company valuation, business acquisitions, divestitures and spinoffs, capital restructuring, project evaluation, capital budgeting and fundraising advisory.

View Profile


Harbour Grove

Harbour Grove
Search Fund

Harbour Grove is a team of entrepreneurs focused on acquiring growing middle-market companies, with a focus on B2B services, healthcare, and technology. The fund has equity resources to transact between $25mm and $100mm in enterprise value, with the unique distinction that their intuitional and family office LPs are all former operators and owners.

View Profile


MelCap Partners

MelCap Partners
Investment Bank

MelCap Partners, LLC is an independent, private investment-banking firm providing financial advisory services to middle market companies, including sell-side and buy-side advisory services, the private placement of debt & equity capital, and general advisory services. MelCap focuses on middle market transactions between $10 million and $250 million.

View Profile


Pioneer Metal Finishing

Pioneer Metal Finishing, LLC
Corporation

Pioneer Metal Finishing’s mission is to create value for their customers, associates, and shareholders by providing the highest quality products and services in the metal finishing industry. Nothing is more important to the Pioneer team than these relationships based on trust, respect, and a commitment to protecting the environment.

View Profile

Not an Axial Member yet?

This week from
Middle Market Review

Introducing The Lower Middle Market Add-On Report
Read More

How to Make Your Most Valuable Asset Even More Valuable
Read More

Supply of Healthcare Assets Outpacing Demand, Despite LMM’s Growing Appetite
Read More

Introducing the Masters in Small Business M&A Podcast
Read More

 

Industry Trends

The Lower Middle Market Add-on Report

Add-on Objectives: What Matters/What Doesn’t

Add-on Acquisition Data

Source: Middle Market Review

Get in Touch

Reach out to dani.forman@axial.net to learn more

Learn More About Joining Axial

Request Information

Subscribe to Middle Market Review

Subscribe to Middle Market Review

Please provide valid email address

I want to receive:

Subscribe

Thanks for subscribing!