Advice for CEOs

In a previous post, I discussed the fact that many private equity (PE) firms are struggling to find promising lower middle market companies to invest in at reasonable prices.

The private equity (PE) industry is experiencing a very challenging investing environment. In simple terms, there is too much money chasing too few deals. Dry powder has soared increasing 13 % since December 2014, according to Preqin.com, rising to a record level of $1.24 trillion in March 2015. This amount has risen every year since 2012. As a result, valuation multiples continue to increase, making it more difficult for PE sponsors to find profitable investment opportunities.