Thoughts from Sarowdin Partners

While 2011 was a decent year for M&A activity within the sub-$100 million middle markets (we closed two M&A deals and one restructuring transaction), it was somewhat of a let-down after the strong year in 2010. For the year-to-date period ended in November 2011, deal volume for this sector was down approximately 25%, with deal value holding roughly steady. Average deal value increased by almost 30% to $19 million, while the share of strategic acquirers (versus financial sponsor transactions) increased to its highest level since 2002 (interestingly, another post-recessionary period).