Despite favorable macroeconomic factors in place for increased deal making, fourth quarter results for US middle market activity experienced a similar pattern seen throughout the majority of 2013. Both dollar volume and deal count decreased while multiples continue to push upward as owners of high quality companies remain on the sidelines in pursuing a sale and careful due diligence and a lack of urgency to close deals pressure transaction closings. We believe there are several reasons that deal making will increase in 2014 including accommodative credit markets, strong earnings, improving macroeconomics and high levels of investible cash.
|US middle-market M&A activity||2,975 deals|
|US middle-market M&A average deal multiple||8.4x|
|Cash and short-term investments of S&P 500||$1,282 billion|
|Private equity capital raised in fourth quarter||$53 billion|
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