On 3/5/14, Mary Josephs wrote for Forbes magazine that based upon a Bain & Co. report, that there were several reasons why middle market companies would not be getting more attention and investment from PE firms in 2014. In her article which is called “Four Reasons Middle Market Owners Shouldn’t Wait For Private Equity” which can be found at: http://www.forbes.com/sites/maryjosephs/2014/03/05/four-reasons-middle-market-owners-shouldnt-wait-for-private-equity/, Ms. Josephs gives a couple of reasons for why this is to be, including: Continue reading Who is Correct, Bain & Co. or Bain & Co.?
At the October 2013 TMA Annual I spent a morning with a senior due diligence professional from a “Big 4” firm. He told me that his target clients were PE investors and lenders who were seeking better information on the quality of a potential investment company (or new debtor). At one point, I asked the due diligence professional about what role growth and top-line related issues played in most of his reports. His answer: “growth related issues usually are covered in an asterisk”. Continue reading Many Ignore Top-Line Issues in the Due Diligence Process
WSJ article says that PE firms and Hedge funds are picking up the lending slack to small and middle market companies – while banks are usually open to using professionals, the PE industry is very difficult to pierce. Very interesting data in the article on lending data. http://online.wsj.com/article/SB10001424127887324637504578567383459564510.html?mod=WSJ_hps_LEFTTopStories
When one thinks of technology needs in the middle market, one usually thinks of new hardware and software needs and upgrades. Yet, in a impressive sign of sophistication, the middle market managers surveyed generally looked at technology in a more enlightened way – they viewed technology correctly in terms of the data that technology collect for business review and analysis. Continue reading Deloitte Study Finds That Technology in the Middle Market Means Data Collection
A recent Deloitte survey of middle market company managers* found that the managers think that the US and Canadian markets will have the slowest growth in the world in 2012. While that is not going to happen (as both markets are actually growing as fast as most other developed world markets), the management sentiment is still both confusing and somewhat troubling. Continue reading Deloitte Middle Market Study Has Some Troubling Findings