M&A and External Growth

External growth, partnering with an outside organization, sometimes is the fastest way to grow your company. Explore multiple pathways including acquisition, strategic alliance, joint venture, minority interest, and more!

Strategic buyers and private equity investors look to the middle market in 2018. Building on 2017 activity, all signs point to robust activity for middle market deals in 2018. Compared to 2016, average deal size in 2017 decreased by 16% while deal volume increased by 14% in the US. Growing interest in the middle market […]

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You can do an acquisition on your own, but there are many advantages to having an experienced third-party advisor. Should you hire an advisor for mergers and acquisitions? Many companies execute acquisitions on their own and are successful. In fact, there are entire corporate development divisions whose primary focus is to pursue mergers and acquisitions […]

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Many companies struggle to execute successful deals because they lack a strong M&A strategy. In a survey conducted by the National Center for the Middle Market, 38 percent of middle market companies said that developing the right strategy was their biggest challenge in M&A. That number may actually be higher because often companies react to opportunities […]

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Are you missing out on opportunities for growth?  External growth, where you partner with another organization outside of your own, is often a neglected opportunity. External growth comes in many forms including mergers and acquisitions, joint ventures, strategic alliances, minority interest, and can be tailored to suit your needs. Here are three reasons why external growth […]

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On January 1st many people make New Years’ resolutions to lose weight, exercise regularly, or save money. Unfortunately, many abandon these resolutions shortly after making them. We stop going to the gym and end up blowing our budget on a shiny new widget. The new year is also a time when companies set their own […]

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2017 has been an exciting year. From regulatory changes to tax reform, to the economy, navigating the business environemnt has been filled with ups and downs. Despite this, 2017 was a strong year for M&A activity, especially in the middle market. In light of the volatility, companies turned to smaller deals rather than larger transactions […]

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All business leaders face the stresses of leading an organization; but owners of privately-held, family-owned businesses are in a unique position. Not only do they need to balance the rigors of running a company, defending market share, and dealing with regulatory issues, they must also simultaneously deal with family dynamics. Imagine having the dynamics of […]

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Companies are pursuing M&A in order to compete with the likes of Amazon, Facebook, and Google, and stay relevant with consumers. Technology is transforming multiple industries – not just media and telecommunications – but also healthcare, food and beverage, and automotive. Deals by strategic acquirers from a wide array of industries reached a record $200 […]

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How is your company growing? In business, remaining static is impossible, and if you’re not growing, you are dying. I recently spoke on the concept of “Grow or Die” at the Association for Dressings and Sauces Annual Meeting in Nashville, in light of the trends and evolving market dynamics of the industry. The food and […]

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Acquisition can be an exciting tool for growing your company, but before pursuing a deal, it is important to ask, “What outcome do you hope to achieve from M&A that you would not realize otherwise?” There are a variety of reasons to acquire and although each company’s situation is different, most deals fall under one […]

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Overall deal value and volume remain flat, but middle market activity is on the rise. When compared to 2016, worldwide M&A value and volume remained relatively flat for the first nine months of 2017, rising only 2% and 0.4%, respectively. In the US, announced deal value dropped 12% while the number of deals rose 18%, […]

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Many companies may miss out on growth opportunities, including acquisitions, if they do not reassess their strategy in light of today’s economic environment. According to an article in CFO Magazine, a number of companies are not executing acquisitions because they maintain a high hurdle rate, even though the cost of borrowing capital is relatively low […]

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Capstone Managing Director John Dearing has been selected to speak at FABTECH 2017 in Chicago on November 7, 2017. John’s presentation, “Multiple Pathways of Growth: Innovative Strategies Business Leaders,” will explore five key options for taking company growth to the next level and help leaders understand the power of external growth (acquisitions, joint ventures, and […]

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If you have ever purchased Ikea furniture, you understand the struggle of trying to assemble it. The “simple” diagrams are not easy to follow, some of the screws or nails go missing, and sometimes the piece falls apart after you finish building it. Ikea is hoping to solve this problem for future buyers with its […]

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Should you acquire a company or develop your own solution? This is a question many leaders wrestle with when considering the best path forward for their company; however, there’s no one answer since every company’s situation is unique and each approach has its advantages and disadvantages. Let’s take a moment to explore these two pathways […]

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96 percent of businesses fail within 10 years. 80 percent of consumer products fail annually. Statistically, it’s obvious that launching a new product or service is challenging. Entrepreneurs pour their lives into starting their companies and while some of the lucky ones become the next Facebook, most struggle to succeed. Even large established corporations face […]

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Many executives don’t always give enough pause and thought to the foundational aspects of M&A. The focus is often on doing, not thinking. Of course, it’s natural to get excited about an acquisition, but before you jump into the action, take a step back and think about the “why” of a deal. Why are you […]

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36 percent of middle market companies struggle to find the right partner when it comes to pursuing deals. Most acquirers begin their search by looking at a list of for-sale companies only to come away from the process empty-handed and disappointed. Many for-sale companies are on the chopping block for a reason. They may be […]

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If you pursue acquisitions, there is a high chance of failure. That sound harsh, but about 70% of all mergers and acquisitions fail. Deals fall apart before the transaction closes, suffer integration issues post-closing, or simply do not yield the return on investment that was expected. Think about the disastrous “merger of equals” between AOL […]

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Hollywood would have us believe that the bulk of M&A transactions are a ruse to split of up newly acquired firms, but the reality is most deals average $100 million in size and are not nearly as dramatic as the movies. In today’s environment, where the world is changing quickly, and customers are seeking additional […]

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