Mergers & Acquisitions
Will U.S. set one or two records?
The mergers-and-acquisition business should hit a record in 2017, at least in terms of the number of transactions.
Deals through October, nationally, had already exceeded last year's total of 9,950 M&A transactions, according to Thomson Financial.
It was unclear, however, if transaction value in 2017 will beat the $1.6 trillion posted in 2016. This year may end with fewer huge deals.
The number of transactions involving a Minnesota buyer or seller also will likely be a record this year.
CEO Andy Kocemba of Edina-based Calhoun Cos., a small-business brokerage, said the long, slow recovery from the 2008-2009 recession has increased confidence of business owners and boosted the value of small-company acquisitions.
"Their businesses are doing well and many people who put off retiring now believe they can sell their company for a fair price," Kocemba said. "It also helps that there are qualified buyers eager to purchase businesses that can demonstrate strong cash flow and have solid managements in place."
Calhoun sold 11 businesses in the third quarter alone, averaging about $1.7 million per transaction.
Overall, Calhoun has sold businesses this year at an average price of slightly more than $1 million, an increase from the average price last year of slightly less than $1 million.