RBS: Mid-market cos. reinvesting in selves

BOSTON – Middle market companies are keeping an eye toward buying or selling, but are making reinvestments in their existing operations a priority, according to the “RBS Citizens Middle Market M&A Outlook 2014,” released by the bank Feb. 11.
“Our latest survey indicates that the appetite for acquisitions and sales remains strong, but businesses are taking a more strategic, less urgent approach, which reflects a strengthening economy,” said Bob Rubino, executive vice president and head of corporate banking and capital markets for RBS Citizens. “As more middle market companies see top-line growth, owners are looking for strategic sales or acquisitions that can augment their re-investment strategy and help keep their momentum going.”
Some key elements of the report include that sellers are more interested in selling part of their business than the whole, executives think this year and next year will be a buyer’s market, and half of all buyers and 40 percent of sellers are considering partnering with a commercial bank to provide guidance through the M&A process.
The findings are from a survey of 460 U.S.-based middle market business executives that are open to or currently engaged in some form of corporate development activity, including mergers and acquisitions and raising capital in the New England, Mid-Atlantic and Mid-West regions. For the survey, middle market businesses are those with revenues between $5 million and $2 billion.

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