As valuations rebounded, the second quarter of 2010 saw a marked increase in the number of companies that private equity groups decided to sell.  This three month period saw 100 deals with the sellers realizing over $25 billion in proceeds. That makes this the most active quarter for private equity exits in nearly 2 years.

The mix of sales mirrored that of long-term averages with about 60% of sales being to strategic buyers, 28% being sales to other private equity firms and the remaining 12% representing companies going public. Our daily interaction with private equity groups suggests that they will continue to exit select companies as strategic buyers and private equity investors now hold a record amount of cash and the public markets are once again looking favorably on PE-backed companies that go public.

Given the activity in the market, if you own a company with revenues of between $10 million and $150 million, you owe it to yourself to learn if now is a good time to sell your company as well.  Please contact the MidCap Advisors office nearest you and schedule a meeting to explore your options.