2017 presents a unique opportunity for companies that decide to execute strategic acquisitions.
McLean, Virginia (PRWEB) February 22, 2017
Capstone Strategic, the leading M&A advisory firm for the middle market, surveyed middle market executives from multiple industries on their growth and M&A experience in 2016 and their outlook for 2017. The survey was conducted in December 2016 and followed previous annual surveys of the middle market.
M&A activity across the board is mostly seen as the same (43%) or growing (31%).
Looking forward, our respondents are evenly split on whether or not they will pursue M&A in 2017. 35% are less than 50% likely to execute acquisitions and 35% are more than 50% likely. The top driver for pursuing M&A this year is access to new markets (47%).
As for obstacles to M&A, time and attention demanded by the process is the top barrier to pursuing in acquisitions in 2017 (25%) while the most common reason for not considering M&A as a tool for growth is lack of appropriate target companies (28%).
The overall growth picture is improving. Those reporting modest growth rose from 58% in 2015 to 67% in 2016 and those reporting high growth grew from 11% in 2015 to 13% in 2016. Those reporting contraction shrunk from 9% in 2015 to 5% in 2016.
The business environment is seen by most in a positive light, with the majority reporting the same (50%) or an improved (35%) environment for growth. Compared to 2015, fewer executives saw a worsening environment for growth (8% compared to 13%).
Capstone’s CEO David Braun said: “The survey confirmed that 2016 remained an active year for middle market mergers and acquisitions and looking ahead, we believe we’ll begin to see a renewed interest in M&A activity due to pent up demand and supply in the marketplace. 2017 presents a unique opportunity for companies that decide to execute strategic acquisitions.”
About Capstone Strategic, Inc.
Capstone Strategic is the leading M&A advisory firm for the middle market specializing in not-for-sale acquisitions and corporate growth strategies. Founded in 1995 by CEO David Braun, Capstone has facilitated over $1 billion of successful transactions in a wide variety of manufacturing and service industries. Capstone utilizes a proprietary process to provide tailored services to clients in a broad range of domestic and international markets. For more information about Capstone and its growth strategy and advisory capabilities, please visit http://www.CapstoneStrategic.com. For timely commentary and insights into the M&A market, please visit the Successful Acquisitions blog at http://www.SuccessfulAcquisitions.net. Capstone can also be reached at 703.854.1910 or Growth(at)CapstoneStrategic.com.