It seems undeniable that the economy is working its way out of the recession.
Stronger players are looking for acquisitions while definitely focusing on fundamentals and looking for good deals.
Survivors are beginning to think that the Great Recession wasn’t quite as bad as they feared and definitely nothing like the Great Depression.
The Feds most recent “Beige Book” had encouraging information – reports from the 12 Federal Reserve districts indicate that economic activity continued to stabilize. Dallas indicated activity had firmed. Boston, Cleveland, Philadelphia, Richmond, and San Francisco mentioned signs of improvement. Atlanta, Chicago, Kansas City, Minneapolis, and New York reported economic activity as stable or stabilizing. St. Louis indicated the pace of decline was moderating. Most districts reported a cautiously positive outlook for economic activity.
The Fall season is upon us and buyers are continuing to look for quality deals. Sellers are willing to begin discussions believing that just maybe deals can get done.
Last week’s announcement form the U.S. Small Business Administration that they are willing to guarantee loans under their 7(a) program for business acquisitions including goodwill was welcome news to many buyers and sellers (as well as lenders and intermediaries) who were understandably edgy after the SBA announced very restrictive guidelines in February.
Although there is plenty of remove for an “October surprise”, the outlook for green industry mergers and acquisitions seems pretty positive.