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A vast majority of selected experts in the merger and acquisition industry expect deals to pick up over the next six months, according to a recent survey.
The survey was conducted by the Association for Corporate Growth, in conjunction with Thomson Reuters, and was released this week. The survey asked more than 900 members of ACG to project the short-term future of M&A activity.
Specifically, 71% of survey respondents expect increased activity in the first half of 2010. Respondents also discussed potential challenges that might prevent an increase: 44% viewed a continued credit crunch as the largest obstacle, while 33% said disparities in bid and ask prices were the biggest issue.
Florida's participants expect a significant portion of future merger activity to come from the health care industry, as well as from the business services sector (including professional employer organizations and human resources companies).
John McDonald, a board member at ACG and senior managing director at Hyde Park Capital Partners, notes a different kind of buyer in this economy. As capital has dried up from many private equity sources, many corporations are using cash savings to take advantage of good buying opportunities.
“We're back to where we were over a decade ago,” McDonald says.
One industry that may not yet be getting the attention it deserves from the M&A people: education. McDonald says many companies in the education market have benefitted, as “their valuations have held up” despite a difficult environment.
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