Happy Friday and thanks to the 58 new subscribers who joined since the last edition. We’re the only news source tracking lower middle market M&A. Our goal is to keep you up to date on the latest information/transactions in the market and highlight market participants that are doing interesting things in the space.

This Week’s Feature

The lower middle-market M&A environment continues to be as competitive as it’s ever been. While momentum will likely continue into the near future, deal flow and deal sourcing drive much of the conversation. However, when it comes time to close on a deal, many lower mid-market deal teams lack adequate preparation and strategic planning, which can cause deals to fall short of expectations. If due diligence isn’t a top priority it probably should be.

According to this National Center for The Middle Market report, the majority of buyers in the middle market have limited M&A experience. In fact, about 30% of buyers polled for the report were working on their very first deal. For many of these buyers, the due diligence process can be more confusing and difficult than expected. With inexperience causing many deals to fall short, what options do groups have for due diligence assistance?

For those pursuing deals in the $500k to $25MM range, DueDilio can be a great resource. DueDilio is a due diligence concierge connecting business buyers and private investors with quality, pre-vetted, due diligence solutions. DueDilio has a deep network of independent professionals, boutique, and mid-size firms that can address finance, legal, technology, operations, HR/benefits, and other diligence needs. Today, DueDilio’s network includes over 120 diligence providers in addition to complementary partnerships that extend its capabilities.

Today more than ever it’s important to uncover and evaluate the risks inherent in M&A as well as private investments.  Whether you leverage DueDilio to source a vetted professional or have in-house capabilities, it’s a good idea to have a neutral third party weigh in on the due diligence process.

To learn more about DueDilio you can head to www.DueDilio.com or reach out to its Founder, Roman Beylin, through roman@duedilio.com.

This Week’s LMM Activity

LLR Partners invests in global life science product manufacturer and distributor, Genesee Scientific Link

LLR Partners-backed Appspace acquires digital workplace and intranet solution provider, Beezy Link

The Vistria Group sells hospice provider, Agape Care Group, to Ridgemont Equity Partners Link

MiddleGround Capital Acquires Plasman Holdings, Its Third Automotive Platform in 14 Months Link

Seaport Capital invests in telecommunications company, Municipal Communications Link

Platinum Equity sells watering and irrigation products co., Orbit Irrigation, to Husqvarna Group Link

Platinum Equity-backed Petmate, combines with Cosmic Pet Link

Performant Capital acquires SaaS provider of automotive service workflow tools, Bolt On Technology Link

VSS Capital Partners sells IT support, cybersecurity, and cloud services co., Coretelligent to Norwest Equity Partners Link

Edgewater Capital Partners-backed Naprotek acquires SemiGen, an RF/Microwave products co. Link

Edgewater Capital Partners sells chemical industrials co., DanChem, to Synalloy Corporation Link

HCI Equity Partners-backed MSI Express acquires contract manufacturer., PacMoore Products Link

CORE Industrial Partners furthers its investment into 3D printing with the acquisition of 3DXTECH, Triton and Gearbox Link

New Water Capital acquires HMI Solutions Provider Nelson-Miller Link

Fundraising

Timber Bay Partners closes fund II at $305m Link

Sole Source Capital closes its second fund with commitments of $555m Link

STG Partners raises over $860m for inaugural STG Allegro Fund Link

Other Stuff

Using emotional intelligence to improve M&A negotiations Link

Revving the software engine Link

The cannabis market is quickly attracting distributors Link

Big investors keep pouring money into alternative asset classes such as music rights Link