TAMPA, Fla., Dec. 20, 2013 (GLOBE NEWSWIRE) -- Business owners can look forward to a year with better access to capital, according to Brooke Evans, CEO of CFO Alliance, business performance consultants in the areas of accounting, finance and business process improvement.
"After the recent pattern of investors and businesses holding cash on the sidelines, we are now experiencing too many dollars chasing too few deals," says Evans. "Locally and in the state of Florida, there appears to be a backlog of deals, particularly in the technology field. Even with this backlog, though, there will still be an abundance of available capital, since it's hard to find good deals and there's a tremendous amount of competition for the best."
According to Ernst & Young's U.S. Capital Confidence Barometer, 41 percent of U.S. executives expect to pursue an acquisition during 2014, compared with 23 percent a year ago; with technology, life sciences, healthcare and consumer products leading the way – most of which are particularly strong sectors in Florida.
Noting that companies will be focusing on both organic and strategic growth, coupled with improving operational efficiencies, Evans believes there are two general takeaways for business owners. The first is that this is a good time for entrepreneurs to seek out private equity groups or investment bankers to advise them on selling or recapitalizing their business, particularly in light of increasing valuations. Second is that favorable financing conditions make it a good environment to get deals done.
"Given today's climate, it's especially important for an owner contemplating selling the business to begin getting it ready for a capital transaction," says Evans. She adds that even if they weren't contemplating selling their business, owners should, perhaps, start thinking about it during this cycle. If their business is profitable and performing well in their industry, it might be the right time to exit, even if it wasn't part of this year's planning.
"We are definitely experiencing a new window of opportunity," says Evans. "How long that window is open before we reach another bubble is still to be determined, but smart businesses should be taking advantage of these very favorable market trends."
About CFO Alliance:
Based in Tampa, CFO Alliance (http://www.cfoallianceinc.com) is a team of business performance experts in the areas of accounting, strategic finance and business process improvement. With a mission of helping clients prosper in a healthy, sustainable way, CFO Alliance works with chief financial officers, business owners and their leadership teams to improve performance and respond to changing market demands with ease and efficiency.