News Releases

Main Street Business Owners Can Prosper


Coral Springs, FL., November 25, 2008 - The March Group, a middle market mergers and acquisitions firm, addressed the concerns of small- to mid-sized business owners regarding today's unprecedented financial climate. Hundreds of Main Street businesses rely on The March Group and its extensive cross-industry research to plan for the future. A market analysis issued today by the firm illustrates that the credit crunch and general market instability creates extraordinary opportunities for Main Street businesses that are considering a sale of their business.


The March Group's forecast identifies myriad economic factors favoring owners who wish to sell a business. The research effort, led by The March Group's research director, Carl Doerksen, cites stability as the primary favorable factor in middle market deals. "Middle market deals are more stable now because cash is king," Doerksen said, explaining that large investors require less credit to close the purchase of smaller companies, thus increasing the success rate of closing. "Additionally, despite the very large decline in mega-deal closings, buyer interest in the middle market remains solid because valuations of these businesses did not rise to the extreme levels seen in the mega-deal space." Other current advantages of middle market deals include the following:

  • Private equity firms (PEGs) have significant amounts of capital to invest. According to the Dow Jones Private Equity Analyst, $302 billion was raised in private equity in 2007, an 18 percent increase over 2006. That is $302 billion that must be reinvested through buying businesses.
  • In 2010, the tax reform laws passed under President Bush will expire. Several forecasts predict that Congress will not renew these tax cuts before 2010 and that capital gains tax will revert to historic highs.
  • The worldwide liquidity crisis has caused central banks to dramatically lower interest rates to historic lows, but it is a safe bet that longer-term interest will ultimately rise.
  • More PEGs are buying small- to mid-sized businesses than ever before. In addition to the lack of leverage needed, professional buyers who specialize in locating companies as platforms and add-ons realize that the greatest returns are found in the lower middle market.
  • Offshore buyers are more interested in North American-based middle market companies. Exchange rates are favorable, especially for European buyers who can now buy more company with less cash. The March Group was a key participant in a large investor conference in London on October 7, 2008 and saw first hand the extreme interest in North American small- to mid-sized deals.

The March Group has guided small-to mid-sized businesses through high and low markets for nearly 25 years. The firm remains stable in the face of this economic storm because of its extensive client base.


"The typical investment banking houses are experiencing severe economic distress primarily because of the crash on Wall Street. However, our clients are Main Street businesses: they are the backbone of the country," said Executive Vice President Tom Braun. "Our clients are the remaining bright spot in the economy. The majority of our clients are doing well, hitting their projections and looking forward to capitalizing on a sellers' market." Braun added, "Our clients are eagerly anticipating the future: the ability to do what they want, when they want, with the rest of their lives by selling their businesses."


The March Group is a leading middle market mergers and acquisitions firm with nearly 25 years of experience, specializing in the marketing, negotiation and sale of privately held mid-size businesses. We strategically link business owners who are interested in selling, with individuals and firms who are interested in buying.

For more information, contact:
Kelli Matonak
kmatonak@marchgroup.com
954.282.3336
The March Group Twitter Account
The March Group's Facebook Profile
The March Group LinkedIn Profile
The March Group – Corporations for Sale Blog