Northwest M&A Activity Likely to Heat Up in 2014
The M&A and financing markets have greatly accelerated in the last six months. The number of companies seeking to sell or raise capital has accelerated and financial and corporate investor and buyer interest has dramatically picked up.
While we expect deal activity to be broad-based, several sectors should outperform the market. Fortunately for the Pacific Northwest, many of these industries are well represented in the region: food, agriculture, consumer products, technology and aerospace. There are several reasons for the increase in supply-side activity, the biggest driver being generational transfer.
For the most part, the private equity buyout wave of the late '90s and mid 2000s bypassed the Northwest, which has led to a higher percentage of middle market businesses being family owned rather than being part of institutional portfolios.