When big companies sell, they make headlines. Many are household names, and the transactions are measured in billions of dollars. But the real action in mergers and acquisitions is happening in small- and mid-sized companies. Ninety percent of the businesses sold every year are valued at less than $500 million.

IBISWorld estimates that the oil and gas pipeline construction industry’s revenue will increase 4.7% during 2013 as global energy demand boosts domestic investment in energy infrastructure. Elevated energy prices and technological advances are increasing the cost effectiveness of extracting and producing energy from shale and oil sands. The development of these sources is creating unprecedented demand for the construction of pipelines to connect these new production sites with major markets and existing infrastructure.

Private and public sector utilities-related expenditures have increased 0.5% per year on average during the five years through 2013. In 2008, contractors laid 3,989 miles of pipe, adding 44.75 billion cubic feet (Bcf) per day to the nation’s natural gas pipeline capacity. The midstream industry is clearly in a growth period with strong demand for products and services in the coming months.

However, even though the financial outlook is very positive right now, business owners still have an important question: “Is now really a good time to sell my company?”

You have survived the worst economic downturn in recent U.S. history, clawed your way back, fought to retain existing customers and win new ones. Why would you sell out now?

Some reasons:

1. The economy is growing again. If you work in the midstream, nobody has to tell you that business is picking up. Drilling activity is up. Pipeline construction is booming. The stock market is higher than it was prior to the 2008 crash. The housing market has rebounded, and sales are increasing daily. All economic predictors indicate that numerous sectors, such as retail, aerospace, energy and the auto industry are regaining traction and sales are climbing.

The oil and gas pipeline construction industry’s revenue is forecast to total $52.3 billion in 2018, representing average annual growth of 3.1% during the next five years. Steady expansion in the production and consumption of gas for domestic, industrial and power generation purposes will continue to drive demand in the midstream sector between now and 2018.

If you are thinking about selling your company, you should sell when the market and sales are rising, not falling. Don’t miss the wave that is building.

2. Political questions are answered. Last year, the U.S. faced one political crisis after another. The election, the debt ceiling, new healthcare legislation and the fiscal cliff all created uncertainty. Many business owners were thinking about selling, and potential buyers held off as they waited for answers.

Today, many of those issues have been addressed. We’re in a period of relative political stability before the next presidential election ramps up, and the European fiscal crisis has settled down. Potential buyers are ready to move forward in acquiring new fleets and investing in new operations.

3. Cash is available. Corporations have approximately $1.8 trillion in cash available for mergers and acquisitions. Private equity groups alone have $480 billion. Both corporations and equity groups want to put that cash to work and expand their companies through acquisitions that can help them become more profitable. Energy companies are specifically attractive to investors, because they understand the ongoing need for abundant, affordable energy to drive overall economic success in the U.S.

4. Foreign investors want to invest in the U.S. While some areas in Europe are slowly recovering, overall the European economy is still down. Foreign investors know the U.S. is a safe place to invest their money at the lowest risk worldwide. The dollar is still undervalued, which makes U.S. companies even more attractive.

Foreign companies that have been looking to invest in the U.S. see the next few years as a golden opportunity to acquire profitable middle-market U.S. companies that offer a tremendous return on their investment. Many of these foreign companies also realize that successful midstream companies located in the U.S. are well positioned for growth and provide a solid investment opportunity.

To command top dollar, you want to sell your business when business and the industry are growing, the economy is expanding, political issues are minimal and cash is available. All of these factors make 2013 a good year to take that next step. All the factors are in your favor.

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