During our lives, each of us will experience a situation where multiple forces will come together to create an abnormal condition that can be either positive or negative. Such was the case off the coast of New England some years ago where colliding weather forces created an abnormally violent storm with huge waves resulting in significant loss of life.
Today, a positive abnormal condition exists in the Tech market that is creating a once-in-a-lifetime opportunity for entrepreneurs to capitalize on multiple forces pressurizing the system. There is over $4 trillion sitting on the sidelines in the war chests of strategic and financial buyers. The Nasdaq is at an all-time high with valuations of publicly-traded Tech companies soaring. Borrowing rates for these companies are at their lowest levels since 1950 and are likely to go even lower. There is almost a feeling of desperation as strategic and financial buyers (Private Equity firms) seek acquisitions to fuel their continued growth.
On the other side of the equation, European exchange rates against the US dollar are at their lowest levels since the early 1980s. In particular, the British pound is trading at 1.2, slipping almost 20% from just two years ago as Brexit bears down on them.
In addition, on both sides of the Atlantic, a tidal wave of baby boomers is flooding the market as they look to retire. Many dreamed of passing their business to their heirs, but their kids have no desire to continue in their footsteps so an exit is the only rational decision left.
If there was ever a perfect time for UK and European entrepreneurs to get their businesses into the market to be acquired, that time is now. These perfect conditions will last at least until the US election in 2020. It is a clear call to action and failure to act now might result in your business being stranded in a dead calm after the perfect storm has passed you by.