Expertise Beyond the Numbers

Private Equity and the Manufacturing Industry: What’s Behind the Surge in Private Equity Calls?

Private equity firms currently hold a record amount of available cash to invest, and middle market deal valuations have reached near record levels. Even though valuations are high, these investors must still generate attractive financial returns from this committed capital  or risk failing their investors. Private equity firms are feeling incredible pressure to act smarter, differentiate themselves, and provide returns in a competitive M&A environment.

Private equity firms are more active today calling business owners directly than ever before. Their goal?  Finding a proprietary deal that has less competition (and a less inflated valuation) than a marketed deal.  Chances are that you, as the owner of a manufacturing company, have received or will receive a call from private equity.

The question to answer is:  What do you do?  The natural reaction varies – for some it may be to hang up, for others it may be to hear them out.  SC&H Capital’s recent webinar explored the dynamics of private equity in the current M&A environment, and some strategies to consider when money calls.

SC&H Capital’s webinar covers:

  • Market Activity (timestamp 1:37)
  • Why the Influx in Private Equity Calls? (timestamp 6:04)
  • Strategies to Consider (timestamp 10:32)

Listen to the full webinar to learn more about the strategies to have in mind when money calls you

As you receive calls from buyers (private equity or otherwise), feel free to Contact Us to discuss your specific situation and possible strategies to consider for how to respond when money calls.