Global M&A activity in Q1 2013 is projected to be lower than Q1 2012. As you will note in the chart below, it is also expected to be lower than Q1 2011. Q1 2013 was impacted by several events including the overhang U.S. election, fiscal cliff, and the continued Eurozone crises.

We expect the pace of M&A transactions in general, and the middle market in particular, to increase dramatically over the next three quarters. Companies are continuing to make strategic and tactical acquisitions for numerous reasons including the simple fact that they can get a faster return with less risk via a successful acquisition than by making capital expenditures.