September 20, 2016, NEW YORK – Dealmakers hoping for a rebound in M&A activity will have to wait at least one more month, according to the latest reading of Mergers & Acquisitions’ M&A Conditions Index (MACI).
The MACI is a diffusion index that gauges mid-market merger and acquisition activity. Readings above 50 indicate an expansion in M&A activity, and readings below 50 indicate a contraction. Monthly readings are presented as a time series that can be used to monitor the prevailing rate and direction of change in M&A activity.
The MACI Composite Index for July registered a reading of 51.8, suggesting that activity was relatively flat month-over-month and has yet to rebound meaningfully from a slow first half of the year.
“July has been a historically strong month for the MACI, making this latest reading disappointing to those looking for the next upturn,” said Mary Kathleen Flynn, Editor-in-Chief of Mergers & Acquisitions. “Early-stage deal activity is showing some improvement, but challenges remain in closing deals.”
Highlights:
- Early-stage components that track signed letters of intent, M&A business activity, and M&A staffing all rose, bolstering expectations of an improved second half to 2016
- Divestitures scored 48.0, down from 53.7 in June, and down sharply from March’s 88.3
- The component that tracks completed deals fell to 45.8, indicating contraction
Mergers & Acquisitions’ M&A Conditions Index was developed by SourceMedia Research with the editors of Mergers & Acquisitions to monitor mid-market M&A conditions. The MACI is powered by surveys of Mergers & Acquisitions’ audience of qualified professionals in corporations, investment banks, law firms, private equity and other M&A advisory firms. A complete analysis of the most recent MACI data is available here.
About SourceMedia
SourceMedia, an Observer Capital company, is a business-to-business Digital Marketing Services, Subscription Information, and Event company serving senior-level professionals in the financial, technology and healthcare sectors. Brands include American Banker, PaymentsSource, The Bond Buyer, Financial Planning, Accounting Today, Mergers & Acquisitions, National Mortgage News, Employee Benefit News and Health Data Management.
About SourceMedia Research
SourceMedia Research is a full-service B2B market research service that draws upon SourceMedia’s market expertise and proprietary database of engaged executives to develop information and insights for clients. SourceMedia Research provides research solutions for marketers, agencies and others targeting sectors such as banking, payments, mortgage, accounting, employee benefits and wealth management.
About Mergers & Acquisitions
Mergers & Acquisitions covers all aspects of middle-market dealmaking, including identifying acquisition targets, negotiating transactions, performing due diligence, and closing deals. The brand’s website at TheMiddleMarket.com is continuously updated, providing real-time analysis of news and trends in M&A. Its monthly magazine is published in partnership with the Association for Corporate Growth (ACG), a global organization comprised of thousands of private equity firms, corporate officials and intermediaries.
For more information, please contact:
Dana Jackson
Dana.jackson@sourcemedia.com
212-803-8329
Mary Kathleen Flynn
marykathleen.flynn@sourcemedia.com
917-915-7190