Monday, January 07, 2008

Outlook good for midmarket deals in 2008

Many investment bankers who focus on transactions under $500 million say that the performance of smaller companies has remained strong and that mergers are going forward, with financing only rarely being a deal breaker. On the other hand, some financial sponsors suspect that if tight financing conditions prevail amid a weakening economy, the steep valuations of recent years will likely moderate, and deal activity will slacken.
This article reports that 2007 ended on a strong note for middle-market deals: There were about $10 billion worth of deals in December for transactions $100 million to $500 million in size, compared with $10.9 billion in November and $9.9 billion in January 2007, according to research firm Dealogic.

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