'Main Street' Business Owners Can Prosper During Current Economic Crisis, The March Group's Research Report Shows

The March Group, a Middle-Market Mergers & Acquisitions Firm, addressed the concerns of small-to-mid-sized business owners regarding today’s unprecedented financial climate. Hundreds of Main Street businesses rely on The March Group and its extensive cross-industry research to plan for the future. A market analysis issued today by the firm illustrates that the credit crunch and general market instability creates extraordinary opportunity for Main Street businesses considering a sale of their business.

CORAL SPRINGS, Fla. (Business Wire EON) November 25, 2008 -- The March Group's forecast identifies myriad economic factors favoring owners who wish to sell a business. The research effort, led by The March Group's Research Director Carl Doerksen, cites stability as the primary favorable factor in Middle Market deals.

"Middle-market deals are more stable now because cash is king," Doerksen said, explaining that large investors require less credit to close the purchase of smaller companies, thus increasing the success rate of closing. "Additionally, despite the very large decline in mega-deal closings, buyer interest in the middle-market remains solid because valuations of Middle Market businesses did not rise to the extreme levels seen in the mega-deal space."

Other factors include:

Private equity groups (PEGs) have significant amounts of capital to invest. According to the Dow Jones Private Equity Analyst, $302 billion was raised in private equity in 2007, an 18% increase over 2006. That's $302 billion that must be reinvested through buying businesses. In 2010, the tax reform laws passed under President Bush will expire. Several forecasts predict Congress will not renew these tax cuts before 2010 and the capital gains tax will revert to historic highs. The worldwide liquidity crisis has caused central banks to dramatically lower interest rates to historic lows, but it is a safe bet that longer-term interest rates ultimately will rise. More PEGs are buying small-to-mid-sized businesses than ever before. In addition to the lack of leverage needed, professional buyers who specialize in locating companies as platforms and add-ons realize that the greatest returns are found in the lower middle-market. Offshore buyers are more interested in U.S.-based middle-market companies. Exchange rates are favorable, especially for European buyers who can now buy more company with less cash. The March Group was a key participant in a large investor conference in London on October 7. Interest in the US small-to-mid-sized deals is extremely high. The March Group has guided small-to-mid-sized businesses through high and low markets for nearly 25 years. The firm remains stable in the face of this economic storm because of its client base.

"The typical investment banking houses are experiencing severe economic distress primarily because of the crash on Wall Street. However, our clients are Main Street businesses, the backbone of the country," said Executive Vice President Tom Braun.

"Our clients are the remaining bright spot in the economy. The majority of our clients are doing well, hitting their projections and looking forward to capitalizing on a seller's market." Braun added, "Our clients are eagerly anticipating the future – the ability to do what they want, when they want, with the rest of their lives by selling their business."

The March Group is a leading Middle-Market mergers and acquisitions firm with nearly 25 years of experience specializing in the marketing, negotiation and sale of privately held mid-size businesses. We strategically link business owners, who are interested in selling, with individuals and firms, who are interested in buying.