Facebook and the Psychology of Middle Market Deals

Last week, Forbes published my article “Facebook’s Shopping Spree is Sending Ripples Through the Middle Market.”

The important takeaway from the article is that psychology is crucial to middle market M&A deals.

While at the end of the day, most entrepreneurs don’t expect to sell their companies for $19 billion like WhatsApp or Kickstart¬†their way to a $2 billion deal like Oculus VR, Facebook’s shopping spree can’t help but to affect middle market owners that see the buckets of gold being handed out to Jan Koum and the Oculus team.

While now is a good time to be a seller due to increasing valuations and lots of appetite for acquisitions, owners should remember that the vast majority of middle market deals get done around real economics and real P&Ls.

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