The early news reports of 2011 predicted that the middle market was ‘picking up’ in M&A activity and ‘showing signs of improvement’ in business development. But this confident outlook became compromised by the effects of economical upheavals such as the downgrade of U.S debt and the consequences of the European debt crisis. And while early positive forecasts materialized into steady growth for the middle market, the economy is still in recovery as we approach 2012.
What is the outlook for the M&A market over the next 12 months? In the third quarter of 2011, a survey interviewed 150 corporate executives and investment bankers to gauge their outlook and insight.
The survey findings concluded that M&A outlook over the next 12 months is largely positive, more than three-quarters of respondents (76%) expect deal volume to increase, and 65% expect the same of deal values. The impact of today’s market place has impacted expectations for the financing market with 67% of these respondents describing their outlook as cautiously optimistic.
In addition to these findings, the report looks at the most significant challenges facing corporate development teams regarding M&A, including the most pressing PMI issues and the greatest concerns surrounding financing and regulatory hurdles and the European debt and financial crisis.
At Cassady Schiller, we are actively working on streamlining the due diligence process to assist clients in their M&A activities. Call us today to learn more about how we can assist you and your company in your endeavors.
David Lingler
After spending 5 plus years in an international "Big 5” accounting firm and several years as the controller of 2 local companies in the early 90's, David came to Cassady Schiller in 1992. His focus on accounting and auditing, small business consultation and business valuation brought another dimension to the firm. In 1996, he became Accounting and Auditing Partner, and has helped to grow that aspect of the firm's resume.