One year ago, 93% of middle-market M&A executives surveyed by the Association for Corporate Growth and Thomson Reuters rated the deal environment as good or excellent. Today, the number is 43%. In addition, 45% of the more than 500 i-bankers, PE professionals,
corporate development executives, lawyers, accountants and consultants surveyed in the
latest ACG-Thomson Reuters poll said the weak economy was the greatest obstacle to M&A.
Deal volume worldwide was down 36% to $1.6 trillion so far this year, according to Thomson Reuters, compared to the record-breaking first half of 2007. And going forward, 39% of respondents expect volume to remain static the remainder of 2008, while 32% predict an increase.
With the credit market crimping private equity, the survey polled PE firms separately on a few issues. On the most difficult aspect of their job, 45% said it was securing debt, followed by 41% who said it was winning and closing good deals.
Those last two percentages underscore a point we've noted here before:
Strategics have the upper hand in M&A. That said, it makes you wonder if a survey that polled only middle-market corporate dealmakers would have found a more optimistic outlook on the deal environment.
- Suzanne Stevens
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Juergen Lasowski
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