Tanner-White PLLC releases its comprehensive survey related to the mergers and acquisitions industry and its forecast for 2010 in the M&A sector.
Online PR News – 13-October-2010 – – Financial Industry dealmakers predict a significant increase in mergers and acquisitions during during first half of 2010. A primary contributor to this upswing will be led by the manufacturing, financial services and health care sectors, according to a recent research study performed by Tanner-White Company. Included in the survey were industry leaders such as investment bankers, private equity professionals, lawyers and other dealmakers. 85% of those surveyed believed that merger and acquisition projects will increase over the next six months showing a strong confidence in M&A deals.
Forty-five percent of those industry professionals surveyed in Tanner-White PLLC’s study believe twenty five to fifty percent of the deals this year period would be distressed deals, while roughly half thought that less than a twenty five percent of the mergers and acquisitions deals would involve distressed entities.
The primary expected roadblock to successful deals in the first half of 2010 is expected to be sellers who won't sell at current multiples, according to more than 36% of Tanner White Company respondents. About 29% of those participating were more worried about the credit crunch.
"Business owners are now coming to the realization that business valuations will not return to what they were a few years ago. Private equity, particularly and strategic merger / acquisition buyers are very aware of this fact and are ever so patiently waiting for sellers to come to terms with the new valuation formulas. Buyers are looking to take money off the table – it is a new game today." Brian Clearwater, a managing partner of private equity and strategic relationships at Tanner-White PLLC, a division of the newly acquired Tanner White Company said in a statement.