The retirement of large numbers of baby-boomers will undoubtedly
have a large impact on M&A activity as retiring business owners
look to sell their businesses. Over the last several years, many
reports have surfaced stating that a vast cohort of baby-boomers
were set to retire and which predicted a surge in mid-market
M&A activity, but it appears that the market check-out of this
group has not
been as fast to materialize as previously thought.
Citizens Bank in the US recently released its annual Middle Markets M&A Outlook wherein it
reported the results of its survey of nearly 600 CEOs and business
In its last annual mid-market survey, Citizens had reported
that, while 7 in 10 business owners surveyed viewed their
retirement date as a key factor in determining when to sell, many
owners did not have the desire, or found it difficult, to retire.
However, in its 2016 outlook, Citizens reported that alleviating
owner fatigue is now among the top reasons for lower mid-market
sales and that concerns over future market volatility may push
owners to sell sooner rather than later. In fact, it is reported
that a third of mid-market decision makers are open to considering
a sale over the next 12 months. Bob Rubino, Executive VP and Head of Corporate
Finance and Capital Markets at Citizens, has commented that sellers
in the baby-boomer demographic see that "the economy is seven
years out of recession and believe this may be their moment to sell
before the cycle takes its next downward turn."
Norton Rose Fulbright is a global law firm. We provide the
world's pre-eminent corporations and financial institutions
with a full business law service. We have more than 3800 lawyers
and other legal staff based in more than 50 cities across Europe,
the United States, Canada, Latin America, Asia, Australia, Africa,
the Middle East and Central Asia.
Recognized for our industry focus, we are strong across all the
key industry sectors: financial institutions; energy;
infrastructure, mining and commodities; transport; technology and
innovation; and life sciences and healthcare.
Wherever we are, we operate in accordance with our global
business principles of quality, unity and integrity. We aim to
provide the highest possible standard of legal service in each of
our offices and to maintain that level of quality at every point of
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
While most are well aware that the sale of a business is generally a complex process, even sophisticated business owners are surprised by just how much cost and effort is required to complete the sale.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).