Times Are Right for Selling Private Firms

This will be a “vintage year” for sales of private companies, according to the Geneva Cos., an Irvine-based firm that facilitates such sales.

A record number of so-called “middle-market” transactions of less than $150 million took place last year, Geneva said. Yet there are still many prospective corporate buyers on the prowl for acquisitions.

“Everything points to 1997 as being a vintage year to maximize business value and sell a mid-sized, privately held company,” said David H. Troob, Geneva’s chairman. Deals for less than $50 million are in particular demand, he said.

But that could change, Troob cautioned, if the economy and financial markets weaken or if tax laws are altered.

Patrice Apodaca covers economic issues for The Times. She can be reached at (714) 966-5979 and at patrice.apodaca@latimes.com.