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06

Oct

Deloitte Survey Suggests Three in Five Corporate M&A Professionals Expect Deal Activity to Increase
Written by MidCap Advisors   

activity_uptickDespite the soft employment growth statistics, the budgetary crisis in Washington and overseas, and an anemic economy, a recent survey by Deloitte indicates that businesses plan to move forward with their plans for growth and expansion. Nearly 60 percent of corporate M&A professionals surveyed by Deloitte said they expected an increase in the number of deals their companies will pursue each year for the next two to five years.

Interestingly, the initial optimism reflected in the survey, "Corporate Development 2011," is put into context when you consider that only 7 percent of respondents felt that previous deals exceeded their expectations and more than 31 percent believed that past transactions failed to live up to expectations.

"As the economy stabilizes and slowly recovers, many companies are refocusing on growing their businesses, and they're looking to mergers and acquisitions as a way to accelerate growth," said David Gladden, a managing director in MidCap Advisors' Dallas office. "The days of double digit annual organic growth may not return for some time so corporate leaders are looking to acquisitions as a way to fuel that growth."

Additional survey findings include:

  • Almost half (49 percent) of respondents say their companies seriously consider four M&A transactions per year.

 

  • Over one-third of respondents (39 percent) believe the best way to improve the effectiveness of  corporate development efforts is by improving their internal organization and processes.

 

To download a copy of the survey, please go to www.deloitte.com/us/cd2011.

For additional information on how MidCap Advisors can help you implement a successful acquisition program, please contact David Gladden at 972.535.6417 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

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"We specifically wanted MidCap on this transaction and I couldn't be happier. MidCap really keyed in on what it was that I was trying to accomplish with my business. They worked hard to find me the right partner to perpetuate my business. From the first day I met with MidCap until the transaction was complete I was very comfortable that they were looking out for my best interests every step of the way."

John LaRocca

CEO, William Palumbo Insurance Agency

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