2014 Nearing Recent Record Levels in Q2
- commentary by Mark McGuriman
CBIZ MHM, LLC & ACG Marketing Committee Member
Second Quarter Deal Volume Strong
Flat v. Q1-2014 but Outpacing 2013
All trends are pointing to a record-setting M&A and transaction environment for 2014, despite the second quarter lagging slightly in both deal volume and value as compared to the robust first quarter of 2014.
An abundance of inexpensive capital, coupled with aggressive M&A growth strategies being employed by corporate buyers, are key factors driving a continued favorable market for sellers and, ultimately, an increase in deal activity.
From an industry standpoint, quarter-to-quarter, the region’s transaction activity has been dominated by the Info Tech and Financial sectors, two critical areas of the local economy.
The balance of 2014 shows promising signs for sustained deal activity, with buyers leveraging the abundance of available capital to provide sellers with compelling valuations and deal terms.
Second Quarter Transaction Volume & Value
The second quarter ended June 30, 2014 (Q2-2014) shows a slight decline (2%) in deal volume from Q1-2014 with total transactions decreasing from 429 in Q1-2014 to a very robust 420 deals in Q2-2014. At 420 transactions, Q2-2014 significantly out-paced Q2-2013’s deal volume of 338 transactions by 24%.
Current volume of transactions has been at or near new highs for the last 4 quarters. Q2-2014 deal volume just missed the Q4-2013 26-quarter high of 440 transactions but was higher than Q3-2013’s 396 transactions, the prior high. At 420 deals, Q2-2014 volume was also higher than the prior highs of 353 in Q4-2012 and 314 in Q2-2008.
For a listing of all historical featured deals please go to the LIBRARY tab.
Showcasing ACG Member Deals
Ametek Acquisition of Zygo Corporation