Ed Towers of Tiger Brokerage Group announces that Mergermarket has reported that merger and acquisition (M&A) has been rising this year.  The first half of 2014 was the most active January through June period in the U.S. M&A activity since 2007.  U.S. M&A enterprise value rose to $694.6 billion in the first half of 2014.  This is a 98.3% increase over 2013.  The top industry for M&A transactions are pharma, medical and biotech at $157.0 billion.  The 2nd largest industry was telecom at $152.5 billion in deals.  There are no signs that the pace of M&A activity will slow for the remainder of 2014.  Tiger Brokerage Group is a middle market M&A advisory firm in Naples, FL.

The merger and acquisition market is improving. Ed Towers of Tiger Brokerage Group, reports that the third quarter of 2013 Market Pulse Quarterly Survey Report was just released. International Business Brokers Association and M&A Source prepare this research in conjunction with Pepperdine University.

“This finding is consistent with predictions that more business owners will look to sell their companies in the coming year.” In every market segment, the majority of advisors predict deal value will grow in the next three months.

“Buyers in the lower middle market continue to gain confidence in the economy and in their ability to grow a business. They believe that buying a business is the best way to put money to work, versus starting an operation from the ground-up or other opportunities.”

In every segment, retirement was named the number one reason that sellers put their business on the market. For Main Street buyers, the number one motivating factor was to buy a job and control their own destiny.

Valuation multiples are markedly stronger in the lower middle market, correlating to a strong seller’s market sentiment and the presence of private equity firms in the buyer pool, as well as existing companies poised for growth through acquisition. The multiple for transactions between two million and five million is now 4.3 times EBITDA. EBITDA is Earnings Before Interest, Taxes, Depreciation, and Amortization. The multiple for transactions between five million and fifty million is 5.8 times EBITDA.

Ed Towers points out that personal services, restaurants, business services, and consumer goods/retail ranked among the most active industries. Health care and construction/engineering are also hot industries.

Tiger Brokerage Group is an M&A advisory firm located in Naples. They find buyers for owners of privately held businesses in the mid market.