Strategic Buyer

Buyers Remain Interested in M&A Deals in All Economic Conditions

In today’s dynamic financial landscape, many business owners are seeking innovative ways to secure a comfortable retirement. One sometimes-overlooked strategy is mergers and acquisitions (M&A), which can be used by business leaders, savvy investors, and entrepreneurs to build wealth over time. When strategically executed, M&A tactics can help you to facilitate portfolio growth, generate passive income, and ultimately contribute to a more secure and prosperous retirement.

To many acquirers, the words “competitive process” still carry an undertone of friction. They suggest distraction, inflated expectations, unnecessary pressure, and the risk of being used as a price tension rather than a serious counterparty. Yet this interpretation often misses the deeper reality. For most business owners, particularly founders and long-tenured operators, a multi-party sale process is not an act of aggression; it is an act of responsibility – to themselves, to the business, and to the buyer.

ESOPs have a special place in the business world. There's a bit of mystery around them as they are outside of typical business structures, and many need to understand how they work, much less their role in an M&A transaction. Some ESOPs seeking to sell are curious if they can do so with an ESOP in place. Others looking to buy or be bought out by an ESOP aren't sure of the proceedings. Fortunately, Benchmark has managed both situations and can navigate deals with these added layers of complexity.

2024 is on pace to be a record-breaking year for retirement in the U.S. This year, an average of 11,000 Americans per day are expected to celebrate their 65th birthday. Now through 2027, we will see the most significant surge of retirement-age Americans than ever before. Yet, at the same time, data from the Pew Research Center shows that one in five people over the age of 65 are choosing to continue working, and the Bureau of Labor Statistics is projecting that Americans over the age of 65 will continue to rise in labor force participation over the next ten years. This trend is being mirrored around the world. According to the National Bureau of Economic Research, over the past 25 years, labor force participation at older ages has increased significantly.

At Benchmark International, your deal team will explore various avenues when sourcing a buyer for your company, from undertaking their own desktop research through to utilising a variety of M&A subscription platforms and connections your deal team has accumulated over the years.

The concept of "skin in the game" in the business world is not just a catchphrase; it's an ideology that defines the level of commitment and risk one has in a particular venture. Particularly in acquisitions, where future trajectories can be as diverse as they are uncertain, having a vested interest becomes paramount.

According to a recent Pitchbook report, buyers favor non-backed private companies in today’s M&A market. Non-backed companies are defined as not receiving any outside capital from private equity, venture capital backers, or angel investors.

the financing agreement just like the buyer would negotiate the terms of a loan with a traditional lender. These include the interest rate, the number of payments per year, the loan's size, and the loan's length.

As well as understanding the fundamentals and financial aspects of any offer for your business, understanding ‘your buyer’ is critical to the success of the deal and your ongoing relationships post-completion. Whilst it’s not possible to know your buyer ‘warts and all’ at the start of the process, your team at Benchmark International will work with you throughout the process to build your buyer knowledge.