Regardless of uncertainty in the market driven by tariffs, AI, and geopolitical instability, the market for private companies is still strong – for the moment.

State of U.S. Federal Finances

For the first time in history, the national debt exceeds the gross domestic product (“GDP”). This didn’t even occur in 2008 to 2009 during the “Second Great Depression”. National debt is $36 trillion while Gross Domestic Product is $25 trillion – national debt is 136% of GDP. Furthermore, US Treasury Revenue is about $4.9 trillion AND we’re spending just about $7 trillion with an increasing deficit. US Federal Revenue is only 14% of our national debt. National debt will never get reduced, much less paid back at this rate. Debt service alone on the $36 trillion would also seem to indicate that we will never have a balanced US Federal Budget again – ever. We are simply spending ourselves into a market correction.  These numbers are alarming and owners are strongly advised to get ahead of any pending market correction.

Uncertainty and Geopolitical Concerns

Right now, we’re experiencing uncertainty in public markets. While earnings per share have been at record highs for some time, as are market value levels,  uncertainty is caused more by geopolitical issues and tariff’s rather than some underlying financial metrics.

 Historically, investment in private companies outperforms that of public markets. Buyers and investors want to be in the private market and own private companies- it’s less volatile and has greater returns than the public market. However, owners of private companies are sitting tight due to market uncertainty- even with tremendous demand for these private companies. Supply and demand. Demand for private companies has never been greater while supply is limited. The result – record high values being paid for private companies in this current market.