Capital Insights: 2017 Year In Review and a Look Ahead
January 8, 2018 - By: SC&H Group
Team completes 19 transactions in 2017 and prepares for strong market activity in 2018
As SC&H Capital kicks off 2018, we reflect on the impressive year of activity behind us. The SC&H Capital team completed 19 transactions in 2017 and worked with many additional clients to prepare them for transactions in 2018 and beyond. Where we go in 2018 with our robust backlog will be powered by the success and hard work of 2017.
Every SC&H Capital engagement is supported by the efforts of a strong team who focus on executing a process built on expertise, hustle, and drive to find the right strategic solution for every client. Our efforts in 2017 resulted in transactions completed in multiple industries including healthcare, government contracting, technology, and manufacturing, for clients across multiple geographic regions including several international transactions.
Each client engagement begins with us understanding our client’s unique story and goals, and how we can help guide them towards a transaction that culminates with a successful outcome for that client. Several common themes that stood out this year among many of the clients we worked with included:
- Maximizing value for the company that our clients built over their lifetimes
- Finding a true partner, rather than just a buyer, whose strategic vision aligns with our client’s
- Executing a transition strategy that does not materially alter corporate culture and/or management teams
- Securing a transaction that creates opportunities for employees to benefit from the exponential growth of the organization
- Allowing for a timely exit from the business post-transaction for the former owners
Meeting a client’s objectives requires taking the time to define what the right solution is for them, to determine who the right buyers or investors are, and to design an M&A process that highlights their unique position among other organizations in their industry. Our ability as investment banking advisors to create a process that highlights our clients’ differentiation from the competition maximizes the probability of achieving a successful outcome. What makes our clients better than their competitors and how that positioning makes them unique in the market remains a common theme in all of our engagements. As shown by the numbers, we were successful in accomplishing this strategy for many clients in 2017.
As we start 2018, the market is digesting a dramatic change in corporate tax rates that significantly lowers tax burdens for all U.S. companies. As a result, the domestic M&A market is looking stronger than ever. Based on our continual discussions with buyers and investors across multiple industries, SC&H Capital believes that 2018 is poised to be another active year as illustrated by:
- Continued strength in the M&A market (both market valuations and the number of transactions)
- High levels of liquidity in the credit markets will continue to fuel acquisitions due to availability of favorable debt financing
- Both strategic and financial buyers will continue to be interested in making acquisitions to supplement organic growth
- High levels of deal activity in the healthcare segment will continue as the changing regulatory environment continually creates new opportunities
- Strong government contracting M&A market as defense related spending levels strengthen
The SC&H Capital team is always open to a conversation about how we can help you or someone you know evaluate M&A options. We encourage you to Contact Us and begin a discussion on how SC&H Capital can help you.