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The Brexit and Private Companies
28/6/2016 - Brexit
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The European Union (EU) has 28 member states who have developed an internal single market through a standardized system of laws that apply in all member states.  EU policies aim to ensure the free movement of people, goods, services, and capital within the internal market.  Economically, the EU, to some degree, operates like its own count...

The European Union (EU) has 28 member states who have developed an internal single market through a standardized system of laws that apply in all member states.  EU policies aim to ensure the free movement of people, goods, services, and capital within the internal market.  Economically, the EU, to some degree, operates like its own country.  What if Texas or California wanted to break away from the US’ business laws, banking, and flow of goods and services?

The United Kingdom (“UK”) is our 3rd largest trading partner and now there is uncertainty to the exact nature and methods of our trading relationship moving forward.  This uncertainty is causing volatility in the world’s capital markets - and that affects us all.

The good news … it looks like interest rates will remain low for the foreseeable future.  Lower interest rates mean more buyers and higher prices for private companies. Furthermore, in these volatile markets, private companies in North America represent a safe haven for buyers. 

However, if the Brexit event causes a recession in Europe, the EU without the UK, may not support economically troubled EU members (like Greece).  The result to the world economy could be catastrophic.  This possibility is compounded if additional EU members follow suit and choose to exit.

Most Owners Have Worked
Too Hard To Let This Occur.

The Brexit event underscores how geo-political events - that cannot be controlled or predicted - can affect the value and marketability of a private company. Most owners have worked too hard to let this occur.

eMerge M&A has sold 100’s of private companies across industry sectors over 27 years.  We have found the average time from choosing to start the process to sell a private company to closing a transaction is 11 months.  Much can happen in that time frame. Is it worth taking the risk anymore?

Many owners tell us they are “having fun” or “aren’t ready”… these are not good enough reasons to risk what you have worked so hard for.