Market Commentary

MARKET COMMENTARY
By: Robert Kheir, MBA CMA
Associate Corporate Finance Associates

The market for selling a privately held business in North America has never been better than it is today. This is due in part to the following factors:

> 6 years of continuous quarterly GDP growth
> Record levels of money flowing into private equity funds ($300 billion in 2006)
> Record levels of money flowing into hedge funds ($1.53 trillion in 2006)
> Readily available commercial credit
> Strong performance at individual company levels

This has resulted in:
> Increased merger and acquisition activity
> Greater interest in privately-held companies
> Increased competition for acquisition candidates
> Higher valuations

It might be time to consider selling the business.