First Half of 2014 Best for M&A in 3 Years

Positive predictions that 2014 would be a good year in mergers and acquisitions are holding true, with the first half of 2014 generating more middle-market deals at higher prices, than the same periods in 2013 and 2012.

Strong momentum during the fourth quarter of 2013 carried over into the new year, giving January a boost from deals not yet closed by year end, and making it the best month, with 216 completed transactions. So far, 2014 has brought a total of 1,057 deals valued at $137.9 billion, a significant increase over the 996 to the deals in 2013 and 1,023 in 2012.

Within the first three months of 2014, U.S. transactions increased by 3.2 percent while deal value increase of 62.7 percent compared to the same period a year ago. Capital overhang, monetary policy and positive economic indicators including elevated consumer confidence and corporate profits, are some of the key contributors to this change in market activity.

Industries experiencing the most activity include health care, manufacturing, technology and telecommunications. In addition to these growing sectors, the M&A advisors at Doeren Mayhew Capital Advisors have seen a boost in interest from foreign buyers, many of which are looking to expand into Houston’s hot energy sector.

“This year we have seen an increasing interest from international companies looking to stake their claim here in Houston,” said Steven Silverman, managing director at Doeren Mayhew Capital Advisors. “We are also witnessing the return of the strategic buyer, as businesses look to take a more calculated approach to their growth potential.”

Among other positive trends, the first six months of 2014 proved to be one of the best fundraising periods for private equity firms. Having raised $190 billion globally year to date, private equity firms are projected to match, if not exceed, the $420 billion fundraised in 2013.

If you are considering buying or selling, contact the M&A advisors at Doeren Mayhew Capital Advisors for more information on how we can assist you.