Home | Business News | Browse by Publication | M | Metal Center News

Conditions ideal for service center mergers and acquisitions: buyers and sellers both have solid reasons to come together and strike a deal.

Article Excerpt
IF YOU'RE IN YOUR 50s or 60s and you're a shareholder of a service center, it's only natural to question just how long you should hang on before you retire. Would it make sense to sell at a time when you're making a lot of money? Is that when you'll be sure to get the best price? How long do you want to wait?

Similarly, if you are interested in acquiring service centers, it is important to understand whether this is the right time to buy, and, if so, what would be considered a fair price?

As advisors, we are constantly fielding these types of questions from service center owners. Today, we're telling them this: It's a great time to either buy or sell service centers, for a variety of reasons:

* Changing industry dynamics are giving owners an opportunity to re-think their strategies and become active buyers or sellers.

* Significant liquidity in the service center industry, offering good access to growth capital, is driving a record number of mergers and acquisitions.

* Valuations of service centers are near the long-term average, which means the expectations of both buyers and sellers are closely aligned.

Shifting market dynamics (Figure 1) within the steel supply chain suggest that this is the right time for buyers or...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!