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.