April 25, 2014, NEW YORK – SourceMedia has developed a new index called the Mid-Market Pulse (MMP). The MMP is a forward-looking sentiment indicator that monitors the near- and intermediate-term outlook for merger and acquisition activity within the middle market.
The index was developed by SourceMedia’s research division and the editors of Mergers & Acquisitions, SourceMedia’s leading information resource covering middle-market dealmaking, and is published in partnership with McGladrey LLP. The MMP is based on insights derived from a monthly survey of approximately 250 industry executives from a representative distribution of firms involved in M&A activity: private equity, investment banking, law firms, and other M&A advisory areas.
The MMP composite index’s initial three-month reading of 75.2 indicates broad optimism about overall M&A activity in the coming quarter. The inaugural 12-month composite reading was similarly high, coming in at 73.6.
Each month, the index will also spotlight an individual industry and present respondents’ expectations for deal activity within that specific sector. The first month’s MMP industry in focus is health care, and sentiment scores outpaced the overall market: the three-month reading for health care came in at 82.0 and the 12-month at 80.5. For a complete analysis of the MMP’s most recent data, go to TheMiddleMarket.com/MMP_April
“Expectations are particularly high for the health care sector in the short term, a trend fueled by the recent enactment of the Affordable Care Act,” said Mary Kathleen Flynn, editor-in-chief of Mergers & Acquisitions. “Over time, as providers and insurers adjust to the regulatory changes, health care M&A will remain robust but grow more slowly.”
Future MMP surveys will focus on consumer / retail, manufacturing, financial services, energy, and technology / media / telecommunications, among other sectors.
"With our focus on the middle market, McGladrey is excited to partner with SourceMedia on the MMP," said Don Lipari, national leader of private equity services for McGladrey. "In a continually evolving M&A market, we recognize the importance of providing intelligence to our clients to help them be successful at every point in the transaction life cycle. As a leading indicator for potential changes in momentum in M&A activity, the MMP offers private equity and strategic investors insight into trends affecting overall deal economics.”
Survey responses describe expectations and outlooks for three- and 12-month forward periods to arrive at indicator scores. Index and component scores above 50 are indicative of positive sentiment, and scores below 50 of negative sentiment. Various indicators that make up the MMP include projected deal volumes and pricing, staffing resource utilization levels, and the expected impacts of economic conditions, taxes and regulatory policy on future M&A activity.
SourceMedia, an Investcorp company, is a business-to-business media company serving the financial industry and the related fields of professional services and technology. SourceMedia offers its clients and subscribers professional information services – both print and digital – industry-standard data applications, in-depth seminars and conferences, research, and specialized marketing services.
About SourceMedia Research
SourceMedia Research was launched in 2010 to operate in tandem with the company’s existing news and analysis, events and marketing solutions operations. Building on SourceMedia’s strong audience communities, and working closely with its editorial teams, SourceMedia Research provides a full range of industry-standard capabilities, including quantitative and qualitative surveys, data analysis, panel management, and white paper development. Surveys are developed independently by our subject matter experts, as well as in consultation with syndicate partners and clients. Data and insight derived from SourceMedia’s research studies can support strategic and tactical decision- making, product development and demand analysis, and the creation of custom research, thought- leadership and positioning programs.
About Mergers & Acquisitions
Mergers & Acquisitions covers all aspects of middle-market dealmaking, including identifying acquisition targets, negotiating transactions, performing due diligence, and closing deals. Serving nearly 18,600 print subscribers, our 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. With more than 25,000 unique monthly visitors, themiddlemarket.com is continuously updated, providing real-time information and analysis of news and trends in M&A. Our online video series features interviews with high-profile dealmakers, including private equity partners, strategic buyers, investment bankers and other advisers.
McGladrey LLP is the leading U.S. provider of assurance, tax and consulting services focused on the middle market, with more than 6,700 people in 75 cities nationwide. McGladrey is a licensed CPA firm and serves clients around the world through RSM International, a global network of independent assurance, tax and consulting firms. McGladrey uses its deep understanding of the needs and aspirations of clients to help them succeed. McGladrey meets the needs of private equity firms and their portfolio companies with integrated transaction advisory, tax, assurance and consulting services. Clients benefit from a single-point-of-coordination service model and teams that operate as strategic partners throughout the private equity life cycle. For more information like us on Facebook at McGladrey News, follow us on Twitter @McGladreyPE and/or connect with us on LinkedIn.
For more information, please contact:
Mary Kathleen Flynn