M&A Trends In 2013

By Dennis McCarthy – (213) 222-8260 – dennis@mbsecurities.com – 

Stats now confirm what many of us in the M&A business have recognized for some time (link).  Middle market M&A activity has gotten stronger over the last several quarters.

The stats that I mention are courtesy of Mergermarket, the well-regarded source for M&A data.  Mergermarket reports that middle market M&A value is up 40% so far in 2013 vs  the same period last year as reported in its “Q1-Q3 M&A Trend Report”.

Stats like these are valuable but they’re a lagging indicator of deal activity because M&A projects typically take months from initiation to completion.   This report captures M&A deals that closed during this last three quarters ended September 30, 2013.  Companies embarked on those projects many months before, many in 2012, for example.

Now, another point to consider.  The fourth quarter of last year was a very strong quarter for M&A deals because deals  closed in 2012 qualified for favorable tax treatment. So the full year 2013 results may not show such a dramatic increase because last year’s fourth quarter was such a big M&A quarter.

I think the trend of increasing middle market M&A activity will continue; the conditions driving the trend remain favorable.

I’ve attached a link to the Mergermarket report below.

Please contact me to help your company to successfully complete an M&A deal or any capital market project.

Click here to go to the Mergermarket Q1-Q3 M&A Trend Report