Report: Mid-market companies seeking acquisitions
A new report has found that a quarter of middle-market companies are currently involved in acquiring other companies, according to Citizens Commercial Banking, a division of Citizens Bank.
The results of an annual study by the bank point to an improving economy as more executives push to make acquisitions. The national survey questioned executives from private or public companies with annual revenue between $5 million and $2 billion.
The 25 percent of respondents reporting they were involved in an acquisition was up from 17 percent last year. The percentage is even higher among larger mid-sized companies (those with annual revenue between $100 million and $2 billion), where 46 percent reported being involved in a purchase, compared to 30 percent last year, according to Citizens.
“Our 2015 survey indicates that the appetite for acquisitions and sales has increased since last year,” said Bob Rubino, executive vice president and head of corporate finance and capital markets for Citizens Commercial Banking. “Many owners are looking for strategic acquisitions that can help them grow. Buyers are no longer sitting on the fence.”
The impetus to sell in the market may be influenced by retirement plans of baby boomer business owners, according to the survey, with 70 percent considering their retirement date a “key factor” in determining the timing of a sale. Many executives also believe the market is shifting in favor of the sellers, according to Citizens.
Citizens, based in Providence, R.I., is one of the largest banks in Central Massachusetts, with 31 branches in the region.
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