OK,desperate is probably too strong a word, but many private equity groups are getting anxious about getting deals done. They have raised and now are sitting on their funds, but for the past two years have had a hard time finding good investments. Many now see this as a great time to buy. We currently have a number of letter-of-intents signed with PEGs, and our clients that continue to perform get lots of attention (from both strategics and PEGs, but especially from PEGs). Many companies are starting to stabilize after the recession, and the PEGs now see an opportunity to acquire at a decent price with good growth opportunities in the future.
The best way to explain it is to have you read what a couple of private equity guys have written. Here are two letters I received in the last couple of days:
I thought I would reach out to see if you had any opportunities you are either currently marketing or would be taking to market prior to the end of the year. Despite a really tough environment in the first half of 2009, we are seeing some owners considering a sale as the economy has leveled off and some owners have decided it might be several years before their businesses return to pre-financial meltdown levels.
We continue to look for opportunities where we can acquire and operate a service business with EBITDA in excess of $1 million. As a reminder, we tend to focus on businesses that cater to industrial markets and clients. Some examples of these would be:
- Environmental service firms
- Utility and pipeline services providers
- Recycling businesses
- Rail and intermodal service providers
- Equipment maintenance and refurbishing providers
- Testing, training, and monitoring firms
If you are aware of anything you think would be a fit, please do not hesitate to call or email.
I hope all is well. It has been a few months since I last reached out to you, but I wanted to follow up to see if you are currently working any deals in the $1m – $5m EBITDA range that might be a good fit for our firm?
As discussed, we are actively seeking to acquire and operate a successful business with strong recurring revenue and potential for scalability. We are currently targeting the following sectors: Business Services, Business Process Outsourcing, Value-Added Distribution, Manufacturing, B2B Products, and Software as a Service. Thanks again.