At the beginning of each year, we receive an abundance of communication from investors prognosticating about market dynamics in 2017. These investors range from banks, to debt funds, to traditional private equity firms. While disagreements abound, many share some  common themes. To help you make sense of it all, we’ve briefly summarized three themes  here:

• Mid-Market business owners anticipate strong growth in 2017. In a survey by the Harris Poll, 8 out of 10 expect expansion and diversification into new markets, geographies, and products. Expectations on their ability to finance the growth is also positive. We agree.

• Expectations for inorganic growth – mergers and acquisitions – are also strong. Harris Poll reports half of those surveyed expect being part of a transaction in the next three years. Citizens Bank reports that 73% of mid-market business owners surveyed are either currently involved in or open to considering making an acquisition, up from 60% in 2016. We’re surprised at the strength of these statistics, but anticipate more activity this year than last.

• In a report published by Firmex, Joseph Packee of Baird highlighted three dynamics leading to more Mid-Market transactions: record amounts of cash on corporate balance sheets, lackluster organic growth, and a very high level of available private equity capital. We couldn’t agree more!

Our wishes for a happy and prosperous 2017. Please contact us at 1.312.775.2030 or Info@HighlandRidge.Capital for information on both capital raising and M&A advisory.