The first quarter of the 2014 has been remarkable for the mergers and acquisitions industry. The total value of the deals that were closed is the highest since the year 2008. This appears to be a promising aspect, but there is one contradiction. While the value of the deals has risen; the total number of deals has actually fallen.
The industry experts are really happy with the stats that have been put forward by the merger and acquisition industry news. In the first three months, the total worth of the deals has been recorded at nearly $67 billion. Since the year 2008, this is the greatest value for the first quarter. Despite the value, closing the deals themselves was not an easy process. This last year also saw some of these difficulties.
In the first quarter, 506 merger deals were made in the middle market, which is the second lowest value for the past five years. The lowest value was noted for 2012, in which only 487 deals were made in the first quarter. Each of these was valued at an amount that was less than $1 billion.
According to a recent survey which analyzed the first quarter of the middle market, momentum is building up in the merger and acquisition industry. The respondents claim they have seen higher levels of deal flow this early in the year. The dealmakers are positive that the middle market merger sector will witness a rise in activity levels in the next few months.
A reputed professional told the press that he had high hopes associated with 2014. The economic conditions had improved and so the outlook was good. He added that there was still some uncertainty with the economy which might spoil things a bit for some of the sectors.
Most of the deals belong to the oil and gas sector. The highest value of these deals was nearly $550 million, followed by $290 million. The healthcare sector also saw many deals taking place since medical technology is improving. The survey claims that the healthcare sector will be the most notable in the middle market merger industry this year.
While the critics are hopeful about the merger industry this year, they also state that the debt markets must remain stable and there must be no regulatory overhang or government shutdown.