Mid-States Advisors Update: April 2023
The year continues on and we are hearing uncertainty from business owners and their management teams although their businesses remain busy and in many cases highly profitable. While it appears as though many buyers of lower middle market businesses have come to the conclusion that any potential recession will be mild and short-lived, business owners have been somewhat shaken by the recent Silicon Valley Bank collapse and the related fallout.
We continue to see articles about specific industries experiencing difficulties and the impact higher cost debt is having on lower middle market businesses but it is certainly not across the board as multiple clients are seeing higher demand than ever and margins remain very strong. Operators should definitely be cautious moving forward but, as one of Mid-States' friends likes to say, we must be careful not to make a recession a self-fulfilling prophecy.
We continue to seek new clients in both the debt placement and M&A realms. Banks are cautious but their lenders remain hungry, the private debt markets remain strong, and buyer appetites remain strong and are expected to grow as the year continues. One simple fact remains, there is a lot of money on the sideline that needs to earn returns!
This month we are addressing a major issue we see all too often with business owners, their inability to appropriately utilize their trusted advisors. When used appropriately, advisors pay for themselves and the business owner and management teams reap the rewards. We address a recent situation we were involved in to help highlight how to appropriately use advisors for continued success.
As always, if you are interested in learning more about this volume's content or if we can help you or a client in any way, please feel free to reach out to one of our team members.
The Mid-States Team
Joseph P. Alam III
Joe Alam Sr.