Generational Equity Believes Small Businesses Provide Reliability Investors Crave

DALLAS – May 13, 2009 – Limited growth in productivity in recent years worries economists forecasting the recovery from a deep global recession.

At the same time, and perhaps because of the same dynamics, “big” and “slow” are found together in many economists’ forecasts: Big manufacturers and big financial institutions are slowing the recovery, noted Tom Farrell, executive vice president of Generational Equity, which helps privately held and family-owned businesses transact mergers, acquisitions, and strategic growth initiatives.

Small and medium-sized businesses appear to be the fair-haired children of the recovery, Jacobs said; and both public policy and private equity are focused on the promise of better times built on the foundation of prudence and resiliency of small business.

“The implication is obvious to venture capitalists and to companies looking to merge and acquire for growth purposes,” Tom Farrell said. “What we are learning after the fact is that significant aspects of economic growth in recent years were based on false perceptions and outright deceptions: Some of the biggest institutions made the biggest mistakes.”

Productivity in the small-business sector remains as strong as ever because accountability in these companies is immediate. “Growth-oriented companies and venture capitalists know the privately owned business can’t award incentives to bad managers. That seems to be a hallmark of the big operations, but in our world it’s unthinkable,” Farrell said.

Venture capitalists and growth-oriented companies recognize that smaller companies, because they are ethical, customer-focused, and market-driven, are excellent investment opportunities at a time when confidence in big business is badly shaken. “The lessons we are learning the hard way about the lack of safeguards in big business just make the small business more attractive. The result is that our clients are making very good transactions.”

About Generational Equity

Generational Equity is one of the nation's leading middle-market mergers and acquisitions companies, providing private business owners with the information and expertise they require to exit their business successfully. A unique, four-phase approach, combining education, financial analysis and reporting, sales documentation, and deal-making ability, offers business owners an unparalleled level of commitment and experience, all focused on helping to release the generational equity and wealth in every business. For more information, contact Generational Equity at 877-213-1792 or info-us@genequityco.com, or visit www.genequityco.com.