The March Group and Industry Experts Concur Second Quarter M&A Activity Shows Signs of Rebound

The March Group and Industry Experts Concur Second Quarter M&A Activity Shows Signs of Rebound

Date:8/8/2009 2:30:00 AM

CORAL SPRINGS, Fla., Aug. 7 // -- M&A activity in the middle market is strong according to The March Group, a leading private mergers and acquisitions firm. Evidence of increased M&A activity continues to appear throughout industry news articles, including the article in the July 29 edition of BVWire entitled "M&A Activity on the Rebound?" The March Group's Vice President, Merger and Acquisition Advisor Art Ward, Jr. stated in response to the article, "M&A activity has improved in the first half of 2009. All valuation segments are involved as strategic acquirers are actively seeking deal opportunities across the board."

The article stated that M&A activity perked up in the second quarter 2009 in all sectors, particularly the middle- and lower-middle market where deal growth ranged from 11 to 22 percent, respectively. "Deals under $250 million have experienced the largest growth, due in part to the difficult credit environment that has made financing any transactions above this threshold difficult," according to BVWire (http://www.bvresources.com/BVWire/July2009Issue82-4.htm).

Smaller deals are extremely attractive today and prospective buyers' capital reserves have climbed to historic levels. Ward adds, "Substantial capital is waiting to be deployed. Potential sellers need to optimize this breaking news."

Global M&A news shows promise as well, according to a recent article in Money magazine's online edition (http://money.cnn.com/2009/07/31/news/economy/MandA_pickup.reut/index.htm):

Global announced that M&A totaled $968 billion from January to June -- little more than 40 percent of pre-crisis volumes in 2007 -- and financiers do not expect a sudden return to the hectic dealmaking of the boom years.

But they say an August holiday lull could be followed by an upswing toward the end of the year, based on more active discussions with clients and in some cases growing pipelines of future deals.

"We are increasingly optimistic about the broader level of M&A activity in the second half of 2009," said Wilhelm Schulz, head of European M&A at Citigroup.

"There were three big impediments to M&A which have all improved -- macroeconomic uncertainty, availability of financing, and market volatility."

World stocks have bounced more than 50 percent from a March low, while economists polled by Reuters forecast the global economy will return to sluggish growth of about 2.5 percent next year.

And a recent Deloitte survey, which polled chief financial officers of big British companies, found that a net 81 percent foresaw more M&A in the next 12 months, even though they expect economic growth will be weak and cost-cutting a top priority.

Founded in 1986, The March Group is headquartered in Coral Springs, Florida, and has offices throughout the United States and worldwide. The company employs over 200 professionals and has built a dynamic network of business contacts all over the globe. The March Group specializes in the marketing, negotiation and sale of privately held middle-market businesses. The March Group has successfully helped hundreds of business owners sell their companies by connecting them with buyers.

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