Entrepreneurs are increasingly adopting strategic transactions as a core tool for scaling their businesses and staying competitive in dynamic markets. A recent EY survey found that over 70% of entrepreneurs plan to pursue strategic deals within the next 18 months, including mergers, private sales, and initial public offerings (IPOs). For those with annual revenues exceeding $5 million, this number rises to 91%, underscoring the importance of strategic moves for larger businesses.
IPO activity surged in 2024, breaching the full-year performance of 2023 in terms of proceeds and deal volumes. For entrepreneurs, such transactions are not only a means of raising instant capital but also a strategic positioning of their businesses to ensure long-term market leadership. M&A is especially in favor, with 75% of respondents highlighting these as their preferred strategic moves.
This rising strategic transaction focus is driven by a combination of increasing market optimism and competitive pressure. Entrepreneurs view the deal as a way to unlock growth, enter new markets, and strengthen their operational capabilities. Additionally, they provide access to resources, such as funding, expertise, and partnerships, which will help the businesses scale more sustainably.
This renewed enthusiasm for strategic transactions reflects a broader shift in entrepreneurial priorities: In an environment of rapid change, the bold moves of entrepreneurs are increasingly tempered by a considered approach to strategy in order to make their ventures thrive both in the short and long term.
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