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M&A Executive Insights 200823/04/2008. Source: mergermarket, Nixon Peabody.
 2007 proved to be a year of two distinct halves for the US M&A market, especially in terms of overall deal value, according to this survey from Nixon Peabody and mergermarket. In the first six months of the year, transactions worth $846.8bn were undertaken in the US while the onset of the credit crunch in August weighed heavily against H2 figures – only $479.2bn of deals were completed during the period, just 57 per cent of total H1 value.
The credit crunch has affected more than just aggregate deal values, also impacting heavily on deal terms and agreements which looked markedly different during the M&A market boom in H1 2007. As a result, we believe that this survey is of crucial importance to US M&A executives who want to understand the opinions and attitudes of over one hundred senior Fortune 500 and private equity practitioners to the onset of the credit crunch and its wide ranging effects on M&A.
The findings certainly provide an illuminating and unique view on the current state of the industry in the US, ranging from the predictable to the eye-opening. For example, it is perhaps unsurprising that over three-quarters of respondents believe that deal values would most likely be worth less than $500m in the next 12 months. However, those surveyed were also evenly split over whether the current market volatility would drive M&A transactions. Indeed over half of corporate respondents thought that the change in market conditions would lead to an increase in deal flow for strategic buyers, primarily because it would lead to what one respondent termed as “more reasonable valuations”.
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Nixon Peabody LLP is one of the largest multipractice law firms in the United States, with offices in fourteen cities and more than six hundred attorneys collaborating across fifteen major practice areas. The firm's size, diversity, and state-of-the-art information systems enable it to offer a comprehensive, integrated range of legal services to individuals and organizations of all sizes in local, state, national, and international matters. For further information please visit their website at www.nixonpeabody.com
mergermarket is an independent Mergers and Acquisitions (M&A) intelligence service with an unrivalled network of dedicated M&A journalists based in 53 locations across the Americas, Europe, Asia-Pacific, the Middle East and Africa. Unlike any other service of its kind, mergermarket specializes in providing forward-looking origination and deal flow opportunities integrated with a comprehensive deals database - resulting in real revenues for clients. Visit www.mergermarket.com.
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