News From The Middle

Published on: 08/21/2013

The M&A environment improved slightly in Q2 2013 from the previous quarter after record-breaking deal activity in 2012. The increase in Q4 2012 and subsequent decrease in Q1 2013 were expected, as buyers and sellers worked to finalize transactions before the capital gains tax rate increase. Transaction volume should continue to accelerate in 2013 as strategic acquirers and private equity firms focus on new investments, as evidenced by an increase in deal activity of 3.4% from Q1 2013 to Q2 2013. Despite a decline in M&A activity in the first half of 2013 compared to the same period in 2012, improving confidence in the economic recovery by consumers and investors should provide momentum.