Software and Technology Sectors Remain Robust, Consumer-Related and Distribution Businesses Stabilize
TruSight, LLC, a leading deal origination services company, announced the release of its third quarter 2020 TruSight SMB M&A Market Report©. The regular engagement with our distribution channel of over 500 private equity and family office investors provides TruSight with an early and unique perspective on investment and merger strategy trends. Its most recent third quarter report examines how the global pandemic has influenced the views of fund managers and high-net-worth individuals in the lower-middle market mergers and acquisitions industry.
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The third quarter survey results show how technology enhances access to information and insights. The key is helping businesses find the right investors at the right time. The combination of those steps requires personalized relationships that technology can’t replace.
“The pandemic has touched all of us to varying degrees. Our goal for this report was to add data to the anecdotes about how COVID has impacted market pricing trends,” said Dan Mahoney, Managing Director, TruSight, LLC. “Many of the broad statements were validated with consistent responses and facts. At the same time, we were impressed to see how businesses are continuing to execute their strategic plans during these times.”
Valuations continue to be an important topic for business owners and investors. The results from our survey highlighted software and technology as growth sectors, with manufacturing organizations being impacted the hardest. The consumer-related and distribution segments show encouraging trends that we will continue to watch.
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Additionally, TruSight asked investors to share how their strategies to overcome the bid/ask price differences have changed in the last eight to nine months. Buyers continue to look to earn-outs as a way to overcome valuation differences. Across our surveyed group, TruSight heard the importance of being able to connect the right buyer with the right seller upfront, validating the efficacy of dealmakers’ viable tools.
“TruSight was founded with the idea that in the investment world, relationships matter. Our team spends time understanding the needs of our extensive buyer network, so we can add speed, scale, and quality to the deal process,” continued Mahoney. “The third quarter survey results show how technology enhances access to information and insights. The key is helping businesses find the right investors at the right time. The combination of those steps requires personalized relationships that technology can’t replace.”
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