Merger and acquisition activity on Long Island and throughout the United States remains robust, defying concerns about inflation and rising interest rates. Long Island businesses are increasingly becoming attractive targets for private equity firms and other investors looking to boost their deal numbers and annual returns. The rate and pace of M&A activity are expected to pick up in the second half of this year, driven by the resilience of the U.S. economy during this inflationary period [c15083ca].
Family businesses on Long Island, in particular, are sought after in the M&A market due to a lack of a second generation to take over the businesses. Sole proprietors or founders in these scenarios are considering mergers or outright sales as exit strategies. Industries related to home improvements, surveillance, security systems, and home automation are particularly attractive for M&A interest on Long Island. HVAC companies, plumbing, and electrical businesses are also sought after for mergers or takeovers. Independent confirmation of a successful business operation is usually necessary for a company to close a deal. Advisory firms, including banks, consultants, and accountants, play a crucial role in preparing businesses for M&A and guiding them through the process [c15083ca].