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Mid-Market M&A Snapshot
According to Piper Jaffrey and Thomson Financial, about 1,536 mid-market deals (those valued at less than $100 million) closed through Q3 this year versus about 2,117 last year same quarter, a 27% decline. The aggregated value of these deals YTD declined less severely, about 19%, from $43.8 billion to $35.3 billion.
Of course, this performance is still strong: itís just that weíre comparing it to last yearís record-breaking pace.
Itís not hard to finger the culprit for these transaction volume declines: the cost of debt. Interest charged for a leveraged bank loan today is about 8.4% versus 6.3% last year.
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