The U.S. economy in 2012 is proving to be a favorable climate for the purchase and sale of businesses. Companies are beginning to spend cash reserves on strategic and value acquisitions designed to improve their market position, private equity funds are seeking to maximize their long-held portfolio investments and to seize new opportunities, and banks have stabilized their capital positions allowing for increased lending activity.

Sellers now have the opportunity to realize a profit on the sale of their business for the first time in years. Buyers are seizing opportunities to invest their resources to obtain strategic assets and small/middle-market companies. Merger and acquisition activity in northern Illinois should continue to accelerate if the U.S. economy continues to improve.

The keys to successfully completing a business sale/acquisition are to structure the transaction appropriately and to execute an orderly process from initial investigation through closing. Business people must determine the optimal transaction structure to achieve their objectives.