According to the NFIB Research Foundation, small business optimism continues its strong momentum with sustained levels of high confidence since late 2016. Underpinning this optimism is a mood among small businesses that now is a good time to expand.

According to the NFIB research, 30% of small businesses surveyed believe now is a good time expand, up from 23% last October 2017. This expansion reading is over 3 times the October 2016 level as well. This bodes well for the fundamentals of the economy, despite the recent oscillations of the stock market and macroeconomic forecasts.

In the acquisition financing arena, capital availability is destiny as companies require reliable access to capital to grow over the long term. Unforeseen capital needs usually arise when acquirers least expect it. This can cause some concern for the acquisition financing provider, especially when covenants tighten up and that working capital availability is utilized faster than expected.

Mezzanine debt borrowing is usually a straightforward activity that many companies use for funding of transitional growth. Mezzanine debt lenders are highly transparent about their due diligence approach and their post-closing loan management making it easy for companies to engage with.

Elections have consequences and positive ones at that for the acquisition financing middle market. While much media attention is paid to the direction of the yield curve and the Fed’s likely rate cuts, scant attention is paid to the more important drivers of the acquisition financing market – business psychology and regulatory climate.

Good Time To Expand

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