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Article: The real impact of economic conditions on middle market Acquisition prices. (Acquisitions).(Statistical Data Included)
- Article from:
- Soap & Cosmetics
- Article date:
- January 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 Access Intelligence, LLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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There are several factors that affect the attainment of premium prices. Middle market acquisitions are transactions ranging in price from $1 million to $200 million. Many middle market executives mistakenly believe that external economic conditions significantly impact the timing and pricing of these deals. This is a gross misconception. Economic conditions should have little, if any, impact on middle market transaction prices as long as a strategic buyer is located.
A selling owner should not allow a large corporate acquirer to cite bad economic conditions as justification for a substandard transaction offer. Instead, they should demand a deal similarly priced ...