Detail

Don't miss out on NAPEO's webinar on October 10th from 2:00pm - 3:00pm Eastern Time! Today's PEO regularly seeks infusion of capital to fund ongoing operations, to enable an acquisition or fund a systems upgrade.

Given the current low interest rate environment and relatively favorable economic climate, merger and acquisition activity has greatly accelerated. Private equity groups and corporate acquirers are sitting on billions of dollars of cash and have started to use those assets to acquire competitors, invest in complimentary product lines, or to vertically integrate. Small and middle market PEOs are generally at a disadvantage because they lack the capital base to compete with private equity or large corporate acquirers. To address this issue, middle market companies with an acquisition strategy are putting acquisition credit facilities in place. These are debt facilities with minimal equity participation. With these facilities, they can compete for acquisitions on a level playing field. With the consolidation in the PEO industry, many firms are faced with the dilemma to either grow or go, and a growth and/or acquisition strategy might be worth exploring. Silva Capital Solutions, Inc. has teamed up with FOCUS Investment Banking to advise on acquisition strategies. Do you want to "GROW OR GO?"