Capital Markets

Skyway’s M&A Group Sees Strong Uptick in Family-Owned Business Sales

Skyway’s M&A Group Sees Strong Uptick in Family-Owned Business Sales

Since September, the Skyway Capital Markets team has closed five corporate finance transactions totaling over $150 million in transaction value, including the majority sale of four family-owned businesses and a unique debt financing. Clients represented a variety of industries including a technology-enabled health insurance agency, an industrial products distributor, an IT services business, an internet marketing company, and a wireless telecom hardware supplier. Buyer profiles included public and private strategics, private equity, and a family office.

Skyway Senior Managing Director Michael Faraone discusses the circumstances underpinning these transactions:

“While each situation was unique, there was a common thread – a family-owned business seeking a high-quality partner. One transaction was a third-generation owned business seeking to diversify and take some chips off the table, while also seeking a growth capital partner to support an aggressive roll-up strategy. Another transaction was a founder seeking a full exit and more time with his family. Improving the lives of employees and maintaining family legacy were other core themes.

While the economy remains in an active recovery, we see more transactions like this on the horizon. Multiples remain at or near historical highs and there remains a shortage of sellers. These dynamics, weighted heavily in favor of sellers, could change soon based on perceived tax and regulatory uncertainty, but the current environment remains optimal.”

Managing Director Andrew Fenton noted, “Our strong relationships across private equity, family offices and strategic acquirers continue to lead to great results for our clients. We look forward to successful outcomes and new partnerships in 2021.”