With a strong finish to the 4th quarter in 2012, largely driven by changing tax laws, 2013 started off sluggish with M&A deal volume down significantly from Q1 2012. The capital markets appear stable, if not strengthening as the Dow Jones broke through and held 15,000 as well as recent job reports showing promise. The broader US economic recovery still shows pause for concern, as many economists anticipate a 3rd quarter slowdown. Baker Tilly Capital sees a robust 2013 M&A market, as buy-side demand continues to increase. Corporations flush with cash are looking to enhance product portfolios and expand their footprint, but remain hesitant for the right opportunity as the market currently benefits sellers. As valuations tick higher, demand for quality sellers remains strong, with private equity companies continuing to put capital to use and leverage a favorable credit market.