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2005 Directions in the M&A Sector

Transaction Survey Commentary 2004

  • More foreign companies looking for acquisition opportunities in Mexico to set a platform investment to expand in Latin America.
  • Manufacturing concerns continue to improve.
  • Higher multiples/pricing more equity money available.
  • Tons of liquidity in the market, lenders galore.
  • More M&A activity, driven by divestitures, consolidation, and personal financial realignment.
  • More globalization, particularly in the lower middle market. Continued emphasis on efficiency in use of assets.
  • A continued vibrant market for M&A with many opportunities.
  • More cross border activity and more distressed selling in the automotive markets.
  • More buyers than sellers with worthwhile business. Continued sale of holdings by PEGs to other PEGs.
  • Many more transactions where sellers have been approached by a buyer(s) and want to hire us to represent them in the negotiations.
  • More M&A transactions as sell-side companies get stronger and economy and stock market improve.
  • Middle market professionals more bullish about M&A and financing market. More sellers will put their toe in the market in 2005. There will be more VC and PE sellers as well.
  • Fewer cross border deals and more domestic transactions.
  • Continued inflation in EBIT multiples. Corporate buyers relying more on acquisitions for growth. Economy flat.
  • Greater acquisition activity by PEGs.
  • Buyers are finally paying prices which seller will accept.
  • Greater availability of financing. Growth in Technology deals. Greater competition between strategic and financial buyers. Stable multiples.
  • With the USA election behind us and the Iraq election having a strong showing we expect to see more qualified selling parties finally coming to market.
  • Large difference in pricing between high quality niche manufacturers and more prosaic manufacturers. Equity groups getting back into the hunt.
  • Lots more activity.
  • Too much money chasing too few deals.
  • The transportation business is the best it has been in the last 20 years.
  • Profitability is significantly improved. There are more buyers than sellers.
  • Equity funds are once again putting money into transportation transactions after a five year hiatus.
  • More EU buyers in the US.



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