When I speak with founders in lower middle market companies it is clear that they do not use capital markets in the same way as larger businesses... missing out on a growth opportunity that could change their lives, which can reasonably be put down to an Inferiority Complex.

The logic suggests there is no reason for this to be the case as there is no shortage of capital up for grabs with $1.7 trillion available and plenty left on the table, and the opportunity is definitely there with 10,000 companies being sold each year.

Why low-mid businesses need M&A to grow

M&A offers what is in my opinion the optimum way to scale a business in the lower middle market. Whether through consolidating a market position or modifying a portfolio it generates long-term value and resilience.

It also offers a second chance to businesses that are fairly established, where growth has slowed and the likelihood of organic growth through anything other than capital markets driven cash injection is low.

How else could you go from owning a business of $1MM valuation to an exit of $40MM in 4 years with a 60% ownership at the time of sale?

That is the kind of strategy you can pursue when you have the banks on your side, the time to focus on a precise, intentional strategy of buying businesses and the knowhow on how to execute.

It definitely levels the playing field when it comes to growth?

Copying the approach of large corporates

Large corporates have managed to grow by consistently doing this but there is nothing to stop business owners pursuing the same approach for exponential growth and a life changing exit.

You need a deal structure where value is positioned clearly that includes balanced risk/return, offers security and favourable gains, a robust plan and capable people around you to execute.

That is a backable plan that means you will be able to access the capital provision you need to deliver your M&A growth strategy.

Applying this approach to your company

If you're reading this having built a business but believe this market is out of reach, I invite you to get in touch for a free initial consultation.

To message me, click the "Contact Me" button at the bottom of this page and tell me about your situation.