The Transition Companies

M&A Private Buyer Activity Increases

Buyers of Privately-Held Companies Shifting In The Current Market

 

Dallas, TX -- (ReleaseWire) -- 07/30/2009 -- The Transition Companies LLC (“TTC”) reports a fundamental shift in the type of buyer acquiring privately-held companies in the current market.

Historically, more privately-held companies were acquired by public companies. This market has been the catalyst for a fundamental shift with more privately-held companies now buying other privately- held companies.

The breakout of different types of buyers active in this market has changed with private buyers (38% of activity L3M 5-31-09 compared with 21% L3M 5-31-08) more active than public buyers (35% similar time frame compared with 42%). Private money is seeking private opportunities rather than stomach the volatility of the stock market.

Of the public companies buying privately-held companies, stock for stock transactions have increased 9% for the trailing 3 months of May 2009 over 2008. This method of payment helps the buyer reserve cash and mitigates taxes for the seller.

Michael Ryan, Executive Vice-President of TTC said “Stock prices have been volatile and depressed thus reducing the purchasing power of public companies. However, cash reserves are high for private buyers who have increased acquisition activity over their publicly traded counterparts.”

“Regardless of the type of buyer; values for performing companies have not declined in this market” added Gene Sartin, CEO of The Transition Companies.

The Transition Companies LLC , headquartered in Dallas, Texas is a leading Mergers and Acquisition ("M&A") firm specializing in confidentially opening the market to maximize the value realized by the owners when selling their privately-held companies.

The Transition Companies LLC also provides business optimization consulting services for companies that want to increase earnings now or increase market value for a future sale.

Tracing it roots back to 1988, The Transition Companies LLC has offices in Texas, New Jersey, California and Florida. TTC has over 100 professional Associates nationwide.

Contact:
The Transition Companies
Richard D Parker, Executive Director
5080 Spectrum Drive, Suite 310W
Addison, Texas 75001
United States
Phone: 972-450-3100
http://www.TheTransitionCompanies.com