M&A in small businesses drove activity levels in the US last year, and the trend is expected to continue this year. Small business acquisitions (transactions under USD 0.5 billion) were frequent and reached a high in the fourth quarter, according to Fourth Quarter 2014 Market Pulse Survey.
The report said that 55 percent of transactions closed in 2014 were in this category, a result of smaller companies stabilizing operations and cash flow, making them more attractive to lenders and buyers. Other research also derived a similar conclusion. More privately-owned and family businesses are considering M&A transactions in 2015, according to respondents in the law firm, Dykema in its 10th annual M&A Survey.
Approximately 82 percent of the respondents in Dykema’s survey believe there will be an increase in M&A activity involving privately-owned businesses in 2015, mainly through s sales but it may also include an increase in acquisitions by privately-owned and family businesses.