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
- 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.
- Greater acquisition activity by PEGs.
- Buyers are finally paying prices which seller
- 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
- 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.