KUHN CAPITAL Wednesday, March 21, 2018
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Mid-Market M&A Up (Really!)

March 31

According to Mergerstat , in 2003 US middle market M&A activity showed an up-tick in contrast to the substantial declines that characterized 2002 and 2001.

More specifically, the number of 2003 deals increased from about 7,250 to 8,125, while transaction value increased from about $400 billion to $525 billion. These numbers represent increases over 2002’s performance of about 12% and 31% respectively.

The most frequently occurring deal size was under $10 million, with the next most frequently occurring size pegged at $10 million to $25 million. Deal senior debt has also increased after several flat years, with the non-bank share of such debt increasing to 43%, a level not seen since 1998.

Many of the deals done in 2003 were divestitures of “non-core” units of corporate parents. Such deals also frequently feature management-led buyouts (MBO’s), or buyouts sponsored by private equity groups that also typically incorporate meaningful --- though lesser -- management equity stakes.

Kuhn Capital is currently engaged in several such projects where we are representing both management teams and equity investors as they carry out the acquisition of a corporate unit. If you have interest in such a transaction and would like to learn more about our services in these circumstances, we look forward to your contact.

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