Drivers Behind a Record Year in 2017 Middle-Market M&A

M&A in 2017, for a number of reasons, is projected to be robust and will probably be a record year for several reasons, including:

►  In 2016, private equity firms raised almost US$250 billion for acquisitions, which is now available.

►  Large corporates worldwide are still "sitting" on very large amounts of cash that they need to deploy.

►  The new US President is expected to make some fundamental changes that will be business-friendly.

►  Buyers and sellers are expected to take advantage of current market conditions.

►  The low-growth economy encourages the use of M&A as a tool to grow a company, acquire technology or R&D, etc.

►  Interest rates are still low, but are expected to increase over time - motivating buyers to move sooner rather than later.

►  Looming economic uncertainty is motivating buyers and sellers to complete transactions.

► Sellers' worries about valuations, which were an impediment in 2016, have been alleviated.  Now, sellers are becoming worried that if they don't complete a transaction in the near term, they may miss the "window."

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Topics: M&A Market Insights