Transactional lawyers can often provide some significant insight into the business climate. It is not based on economic prognostication skills, it is simply based on type and volume of work being done. By that measure, this economy is hitting on all cylinders. Many clients call their lawyers when they are hiring employees, and when they are letting them go. For some time now, it is well chronicled that companies are mostly hiring.
But it isn’t just jobs–deals are increasing at an astounding rate. In late March and early April, we closed five meaningful investment transactions in a seven day period. That was partially coincidence, but several of those transactions had been in the works for some period of time. In bad economies, even good deals often do not get funded. In good economies, investors and acquirers fight over deals. We are getting to the point where competition among buyers and investors is increasing. I am getting those calls again where funders are trying to find deals. While moderating a recent panel of professional investors, one thirty-year venture capital veteran quipped that “2015 will be the best year to sell a business since 1998.” I don’t think that is an overstatement–but it may actually be eclipsed by 2016.
If you are interested in raising capital into your business or selling, the pendulum has finally swung back in your direction and it appears to be staying there for a spell.