PRINT THIS PAGE Global midmarket M&A activity to rise, according to study02/05/2007. Source: Global M&A. 
Expectations are bullish for upcoming cross-border middle market M&A deals among both private equity and corporate executives, despite a slight downturn in deals completed in 2007’s first quarter, according to a new study performed by Global M&A. The middle market (deals with enterprise values of €25m to €250m typically accounts for 300 to 350 deals per quarter in the US and Europe respectively. The Cross-Border M&A Reporter notes that in the first quarter of 2007, deals were slightly below this level, at 283 in the US and 299 in Europe.
However, 76 percent of study interview respondents said they expect an increase in activity over the next six months in cross-border M&A in their native countries, and 60 percent said they expect an increase in their domestic middle market M&A.
“The middle market is vibrant and very attractive,” said Michael Gibbons, Global M&A chairman. “These results confirm what our partners know from their work in over 30 economies.” Other key findings include:
• Private equity is expected by 65 percent of respondents to be “very active” in crossborder M&A in the next six months.
• US private equity funds are expected by 64 percent to be “active” or “very active” in acquiring European middle market targets in the next six months.
• Yet more competition from strategic buyers is expected in the next six months by 73 percent of respondents.
“This report indicates expected growth in deals, prices and multiples said Michael Gibbons, chairman of Global M&A. With private equity and corporations competing for targets, full value will be realized by those who understand the practices of the middle market, the particular locality in which the target resides and also its sector,” Gibbons said.
The Cross-Border M&A Reporter is based on 50 telephone interviews with private equity professionals and corporate executives in Europe and the US conducted in March and April 2007.
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Global M&A is the product of a merger between leading partners of two separate M&A partnerships - Euro-Merger and M&A Partners. The result represents the best of two worlds: a personal investment banking service delivered by seasoned deal makers combined with a seamless cross-border corporate finance capability. The partnership's focus is on mid-market transactions, valued at between €20 million and €250 million, and each partner has been carefully selected as 'best of breed' in their own local territories. Global M&A's success in delivering outstanding results for its clients is borne out by its recent track record: over 700 completed transactions with an aggregate deal value of over €15 billion since 2000. For more details, visit: http://www.globalma.com
(c) Global M&A 2007 - full survey hosted on AltAssets with permission of Global M&A
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