Week in Review: Middle Market Businesses, SBA, and Forestry

News this week was dominated by large, long-term dramas like the continuation of the Dell saga and the charges against SAC. Below are some of the middle market stories that may have been buried in the mega-market deluge

Above Average Growth for Middle Market Businesses: The National Center for the Middle Market released its Middle Market Indicator this week. Despite the sluggish M&A and economic activity YTD, middle market businesses appear to be growing steadily. According to the survey, middle market companies experienced 65% revenue growth in Q2 — and confidence is climbing.

I Sold My Company Today: Last week, Janine Popick, founder and CEO of VerticalResponse, announced the sale of her company to Deluxe Corp. Despite having spoken with many investors over the years, Deluxe won Popick over because it made it clear it valued her company’s and employee’s abilities.

Deal Drought Raises the Pressure on Private Equity: Turns out that the dry powder that caused excitement last October is still floating around. According to Triago, there is $145 billion in overhang waiting to be invested by the end of the year. It remains unclear exactly how much of that sits within the middle market.

SBA Increases Size Standards for 70 Industries: Starting this week, the SBA increased the size standard for a “small business” in Agriculture, Forestry, Fishing and Hunting, Finance and Insurance, Management of Companies and Enterprises, Arts, Entertainment, and Recreation and Support Services for Mining categories allowing 16,650 new companies to qualify for SBA financing. Might be time get that SBIC license.

The Best Mergers Get the Timing Right: Strategic acquirers are often faced with the “buy or build” challenge. According to Amar Varma, founder of Xtreme Labs, timing is crucial to the decision. He explained, “The larger company only has the window of opportunity to do an acquisition while a company is small enough to need the cash.”

Did you hear?

• Roark Capital Acquires Miller’s Ale House
• Generation Growth Capital Closes on Second Fund
• Hanes to Buy Maidenform for $575 Million
• Adobe Completes $600M Acquisition of Neolane
• RadioShack Taps Peter J. Solomon for Financing
• 6 Core Principles of Business-Building
• Can Crowdfunding Solve the Startup Capital Gap
• Pearson Puts Mergermarket Up for Sale
• Littlejohn & Co. to Acquire and Recap Handy Hardware
• Solis Capital Partners Fully Realize First Fund Through Sale of Tigers Ltd.

 Member Spotlight:

Corum Group is the world’s leading global tech M&A advisory firm, working exclusively with privately held software and IT companies on the sell-side. With a strategy of utilizing senior dealmakers, all former tech CEOs, and a proven, systematic selling process, Corum has sold more software companies than anyone, creating over $7 billion in wealth for its clients across nearly 300 transactions.

Connect with Corum Group or any of the other 13,000+ Axial Members.