The number of middle market M&A deals is up reflecting a rebound in valuations from 9 months ago.  According to a recently published report by GF Data Resources, during the second quarter the number of deals, versus both the same period a year ago and the preceding quarter, grew by over 70% and 60% respectively. The average enterprise value multiple paid for companies during the last quarter was 5.6x EBITDA. This multiple marks an improvement

MidCap Advisors is pleased to announce that Bill Reading will open MidCap Advisors' new Charlotte, North Carolina office.

"This is a very exciting time for us to be growing as a firm, especially given the struggles our economy has been weathering, and we are very pleased that Bill has joined the MidCap Team," said John Poppe, Partner and Co-Founder of MidCap Advisors. 

In my daily conversations with business owners and business buyers, at least half the people I talk with seem concerned about a double-dip recession.

While there are certainly risks, there are some very good reasons to question if a double-dip recession is really something we should be worried about. Earlier this week The Wall Street Journal wrote a very good article  entitled Double Dip? Seven Reasons Why Not explaining why a double-dip recession is not very likely.

The Middle Market Investment Banking Association (MMIBA) has appointed Richard E. Jackim of MidCap Advisors, LLC to join its Executive Board. 

MMIBA is a professional association dedicated to promoting the middle market investment banking profession and its interests to the public, academia and the appropriate regulatory authorities. MMIBA provides training, testing and certification of middle market investment banking professionals by awarding the Chartered Merger & Acquisition Professional (CMAP) designation. 

As valuations rebounded, the second quarter of 2010 saw a marked increase in the number of companies that private equity groups decided to sell.  This three month period saw 100 deals with the sellers realizing over $25 billion in proceeds. That makes this the most active quarter for private equity exits in nearly 2 years.

Our research shows that 77 private equity groups have acquired or invested in 114 companies in the Healthcare Services industry since the beginning of 2009. According to PitchBook, activity in the industry has been on the rise in the first half of 2010 because many believe the healthcare services industry came out as one of the winners in the new healthcare legislation. The buyers we work with expect demand for healthcare service companies to continue to be strong throughout 2010 and the first half of 2011.

The total value of all merger and acquisition (M&A) transactions was $810.3 billion during the first half of 2010.  This is very similar to last year's $814.6 billion for the same time period.

Experts at MidCap Advisors and other leading M&A firms expect deal activity to pick up as market fundamentals strengthen and businesses that have conserved cash begin implementing growth plans that had been put on hold during the recession.

MidCap Advisors is pleased to announce that Allen Conger will open MidCap Advisors' new Charleston, South Carolina office. 

"We are very pleased that Allen has joined the MidCap Team" said John Poppe, Partner and Co-Founder of MidCap Advisors. "Allen's professional experience as both an investment banker and former business owner, combined with his strong connections throughout the Southeast, make him a valuable addition to our firm." 

Prior to joining MidCap Advisors, Mr. Conger served as Director at Pegasus Funds, an investment bank focused primarily on public equities and mergers & acquisitions. In this capacity, Mr. Conger sourced transactions and managed relationships in a wide array of industries.

The survey shows that business leaders are becoming much more optimistic, with 63 percent expecting the U.S. economy to improve in the next six months, up from 43 percent in February.

As the economy steadily improves, business owners may be faced with another credit hurdle - sufficient working capital.  Banks continue to operate with more stringent lending terms and some are only supporting existing clients or are reluctant to increase credit lines.