How much money is there?

We are often asked “How much liquidity is there for acquisitions these days?”

You will be happy to know that a snapshot from the U.S. private equity market reveals there is three quarters of a trillion dollars in committed funds ready to buy your business.  And this is just one slice of the market, the private equity piece.

global private equity

Thank you to our friends at Fifth/Third Capital Markets for this insight![i]

The value of the record 50,600 of worldwide M&A deals in 2017 was $3.5 trillion according to the IMAA Institute[ii]:

m&A worldwide

 

And in North America, the 2,500 M&A deals were valued at $1.5 trillion

number m&A

What does this mean for you?

There is abundant liquidity in the markets.  Capital allocators are seeking candidates in record numbers to add to their portfolios.  When you get the call from Vertical Capital Advisors, listen!  This is the call you wanted the day you started your business, every entrepreneur’s dream!

 

 

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ABOUT VERTICAL

Vertical Capital Advisors is an Atlanta-area boutique investment banking firm built on creating tangible value for our clients, serving clients in just about every industry.  Our clients are both capital growers and capital allocators.  How can Vertical help your firm maximize value?

 

Joe Briner
Managing Director
Vertical Capital Advisors LLC
briner@verticalcapitaladvisors.com
866-912-9543 ext 108
678-591-0273


[i]
http://images.payments.53bank.com/Web/FifthThirdBank/%7B9603ed24-84b5-4d89-adef-bafbe70713dd%7D_Fifth_Third_Capital_Markets_Market_Update_2018_01_23.pdf

[ii] https://imaa-institute.org/mergers-and-acquisitions-statistics/

How Vibrant is Atlanta’s VC Ecosystem? $1 gets you $7.48

We often hear that Atlanta does not have the vibrant venture capital ecosystem that the Bay Area or Boston or even Austin have.  So how vibrant is Atlanta’s VC ecosystem?

PitchBook just released research[i] that reveals exactly where the major VC regions in the U.S. measure up.  There are only 12 cities/regions that had more than 30 VC deals that experienced successful exits in the last 10 years, a successful exit being defined as 1x or greater return of invested capital at exit.  Atlanta had 35 deals which ranks Atlanta #8 nationally, ahead of Chicago, Raleigh/Durham and Austin.

The most vibrant market is the Bay Area where the 613 successful exits exceed the rest of the markets combined.

The most impressive data from this study was that that the average multiple of invested capital at exit is 8x.  In dollar terms, $1,000,000 of VC cash invested returned $8,000,000 at exit.  The figure for Atlanta is 7.48x.  What was most impressive about Atlanta’s VC exits is that 97% yielded a return greater than 2x, the highest of all 12 regions.
multiple-on-invested-capital

We have honestly been a little bashful about projecting exit multiples in the double digits.  We walk that fine line between being credible and incredible.  Even VC firms frequently look askance at projections that show 10x or 20x multiples at exit.  We have a pharma opportunity that should generate 25x to over 50x in three to five years.  So guess what?  Vertical Capital Advisors is going to set the curve going forward.  We are going to work with the VC community to move the needle.  We are located in a wonderfully creative, talented and resource-rich region and VCA will be an agent for transformative growth in our region.

 

 

ABOUT VERTICAL

Vertical Capital Advisors is an Atlanta-area business advisory firm built on creating tangible value for our clients, serving clients in just about every industry.  Our clients are both capital growers and capital allocators.  How can Vertical help your firm maximize value?

 

Joe Briner
Managing Director
Vertical Capital Advisors LLC
briner@verticalcapitaladvisors.com
866-912-9543 ext 108

 

[i] http://pitchbook.com/news/articles/which-us-cites-generate-the-best-vc-returns