The new deal enviroment is defined by continuing economic uncertainty, margin erosion, scarcity of capital and lower risk tolerance on the part of buyers. Despite that, as 2009 comes to a close, we remain cautiously optimistic about middle market mergers and acquisitions as the decade comes to an end. 

Despite the economic turmoil of the last 12 months, 2009 was a year of growth for MidCap Advisors.  In addition to closing several transactions and assignments, we successfully launched our Affiliate Program that supports entrepreneurial M&A professionals with a comprehensive infrastructure support system.  We now have six regional offices supporting middle market companies throughout the United States.

2009 has been an unprecedented year, and many small to medium sized companies and their management teams consider themselves fortunate to have survived the worst recession in 50 years. As strategic planning for 2010 continues, business owners thinking about an exit or major transaction in 2010 should keep the following considerations in mind.

The financial services and insurance sectors will continue to be the most active sector for M&A in 2010 and there will be a growing focus on deals in distressed real estate and debt restructuring, Bernstein's Brad Hintz said.

Despite the sharp bounce from the depressed level set this year, Hintz does not expect M&A activity to cross the peak set in 2007 within the next 4 years.

Richard Jackim, a Managing Director with MidCap Advisors, will address hundreds of the nation's top life insurance producers and financial service professionals at the International Forum's annual meeting to be held in Orlando on January 16-20, 2010.

There are 54 factors that affect the value of any closely-held business. Below is a list of the top 10 factors that sophisticated buyers look at when determining the price to pay for a business.  They are not listed in order of importance, but taken together, these factors directly impact the value of any business.

Over the last several weeks we have seen a number of positive signs indicating that the economy is recovering and that better days are ahead. For example, the Index of Leading Economic Indicators (LEI) is showing consistent signs of recovery and Grant Thornton's Business Optimism Index shows that business leaders are increasingly optimistic about the future.

Can you handle the truth? Of course you can - if you really want to sell your business!

I'm still amazed at how many business owners do not understand the importance of knowing the "realistic" value of their business before they decide to sell their company. In this "breakthrough business strategy," my goal is to help you understand how going to market with a realistic price and realistic expectations is essential to your transition success.

Over the last two months, six private equity groups have retained MidCap Advisors to implement targeted acquisitions programs.  Many private equity groups view the current economic turmoil as an opportune time to make acquisitions and to continue to build their portfolio companies, while others view this as a good time to buy new platform companies.

Unfortunately, these decisions will not sustain business momentum and will further delay many owners' exits. That's a significant problem for baby boomer owners who may be seeking to retire in the next 5-10 years.

Consumer confidence has been up six months in a row.  Wall Street has seen a two-month rally that included a whopping 39% rise in the S&P from the recent rock-bottom lows. Over the past several consecutive weeks, new U.S. jobless claims have dropped. Even quarterly reports from the battered banking sector suggest to some that the worst-case scenarios will not happen.

Does all this signal that the recession, now 18 months and counting, America's longest recession since the Great Depression of the 1930s, is behind us?