I ran across this article on LinkedIn, and found it a great read in the current environment of M&A in the LDM industry:
Fascinating, I’ve been wondering what is behind all this M&A activity! Great post @Mike_Kotloski
Thanks @Andrew_Gibson ! I thought the author’s comment , “it probably is true that a disproportionate number of owners are aging out.” rings true, not only here but in other industries as well! We all think people are just cashing in on the big boys large pocketbooks, but there are times when the next generations just don’t want to carry on the family business. Similar to what we are seeing with music artists selling their catalogues, it’s easier to pass on a check to beneficiaries than to carve up a business and its assets!
That is a very interesting point and it is a testament to the “changing of the guard” happening across the industry. It is a shame to see so many family businesses going away, but this is in line with what I am hearing from others in the M & A busines. I hope technology platforms like Pakira will help the next generation become more interested in carrying on their family businesses …
Also, I think you nailed it on the head here.