Thomson Reuters recently released first-half 2009 M&A deal statistics, which seems to indicate that we have, in fact, turned the corner in the M&A market. At the very least, activity is picking up in terms of small and mid-market deals.
As indicated in the Thomson Reuters blog (below), first half deals are down 45.7% in dollar terms YoY. However, while second quarter mid-market deals were down 43% YoY in dollar terms, they came in 20% ahead of the first quarter, which is stability at the very least.
http://blogs.reuters.com/reuters-dealzone/2009/07/13/keeping-score-signs-of-life-in-the-mid-market/
As I have maintained throughout downturn, small and mid-market deals are where we will see strength first, as large-cap and mega-cap deals require huge amounts of financing, which requires significant primary debt market demand - something that is not fully back.
Although this information is definitely positive, it does remain to be seen whether or not this is the end of the pain in the deal market, as there are various views on whether or not we are fully out of the woods yet. The consensus amongst M&A professionals, as per a recent WSJ DealJournal blog post (below), is a firm no.
http://blogs.wsj.com/deals/2009/07/10/ready-to-call-bottom-in-the-ma-market/
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