Middle Market M&A Outlook 2008
Sector Expertise
The Piper Jaffray Merger Advisories team recently published its Mergers and Acquisitions Insights: Middle Market M&A Outlook 2008 report, which indicates the 2008 M&A market will be steady, but largely dependent on the health of the economy.
For more information:
- Press release (Jan. 3, 2008).
- Video (MPEG format) of Jeff Rosenkranz, managing director and head of M&A, summarizing the report.
- Executive summary.
- Access the full research report on our Insitutional Client Access site
(user name & password required). - Request access to the full report.
According to the report, credit market issues will continue to weigh on the U.S. M&A market through at least the first half of 2008, especially with regard to large buyouts. While the team believes M&A activity in 2008 will cool from the previous year, it will remain well above the recessionary levels seen in 2002 due to the strength of the global economy. Large deal activity will likely be the hardest hit, as the “mega-buyouts” will have difficulty securing financing in the first half of the year. A slight rebound in M&A activity is expected in the second half of 2008 as the market become more comfortable with the current economic environment and credit issues.
In addition, the team believes the following economic and geopolitical questions will dictate the direction of the M&A market in 2008:
- Will the subprime market continue to deteriorate, or will the government's plan to freeze rates resets halt the downfall?
- Will the Federal Reserve continue to aggressively cut rates to support the economy or will inflationary concerns cause Fed officials to halt the increases?
- Will employment levels continue to drive the U.S. economy and enable consumer spending to keep pace with historical levels?
- Will the U.S. economy continue its traditional strong election year performance?