Middle Market M&A Volume Slump Underlines CFW Forecast

In news that underlines CFW's view on the importance of a rebound of mid-market deal-making for a genuine recovery of overall M&A volume (see 'Can PE Capital Augur Mid-Market Recovery?', CFW, September 9 2009), new figures released by GF Data Resources confirmed a marked drop in y-o-y mid-market deal volume. Eight private equity sponsored M&A transactions valued between US$10mn and US$250mn (the measure of a mid-market deal) were made during Q209, creating a cumulative total of 21 transactions in the y-t-d - the lowest figure for six years, as the credit crisis catches up with the mid-market. This compares to a pre-crisis high of 88 deals in H107, and 56-60 deals in H108. Andrew T. Greenberg, CEO and CO-Founder of GF Data Resources commented that deals 'came to a near halt [in H109] as potential buyers continue to wait for lenders to come back into the market'.

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