in a large number of transactions
across a wide spectrum of industries
Current conventional wisdom is that the capital gains tax will increase regardless of which party wins the White House. It is one of many factors driving entrepreneurs to consider selling their businesses. Some business owners, faced with tighter credit from lenders and slower paying customers, may now also be exploring selling part of their companies to help finance their operations during the current economic downturn.
Despite the credit crunch, private equity firms still need to invest capital. They value a firm for its past achievements and future growth potential. Entrepreneurs should fully understand the private equity process before entering into negotiations.
Michael Turner is co-founding partner of Farlie Turner & Co., an independent investment banking firm based in Fort-Lauderdale focused on middle market mergers and acquisitions and capital raising services.