According to The Alta Group, interest in mergers and acquisitions in the equipment finance industry was high in the first half of 2018, reflecting a global trend. In addition, Thomson Reuters, reported that the value of M&A deals announced this year has set an all-time first half record, both in the U.S. and worldwide. If M&A activity continues at this pace, the worldwide total for 2018 will be the largest on record.
“Although the number of transactions completed in the first half of 2018 was not especially high in our industry, a relatively large number of independent equipment leasing and finance companies are currently involved in a sale process and we expect a number of sales will be announced in the next few months,” said James R. Jackson, Alta’s M&A Advisory practice leader.
Bruce Kropschot, senior managing director of Alta, attributed the strong level of interest to the relatively high multiples reflected in the stock market and the M&A market, interest rates that are still quite low, substantial liquidity in corporations and financial institutions and the recent tax legislation with its lower corporate income tax rates and 100% expensing on equipment purchases.
“Several of our clients had not considered selling their businesses yet, but M&A market conditions are so favorable now they concluded they could not risk missing out on the opportunity to sell while prices were high and there were many interested acquirers,” Kropschot said.
The Alta Group recently initiated the sale of Intech Funding to Verdant Commercial Capital as the exclusive financial advisor to Intech, a Monrovia, CA-based company that is focused on financing and leasing for manufacturing companies worldwide. Verdant is based in Cincinnati, OH.
Intech will operate as a wholly owned subsidiary of Verdant and maintain its operations in Monrovia, with all employees including Jeff Glikman, company president, and Ric Rivett, senior vice president, continuing in their current capacities.
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