Mergers & Acquisitions Remain Strong

Despite a sluggish economy, merger and acquisition activity among M/E/P firms is still going strong, according to the market research firm, ZweigWhite, Natick, Mass.

“More firms have incorporated acquisition into their strategic plan, and for many companies, it’s an ongoing part of a dynamic growth strategy,” says Jon Gatti, a ZweigWhite merger and acquisition consultant. “We’re projecting 128 deals in the industry this year, up from 117 last year and 101 in 2000.”

Also bolstering activity is the fact that most deals involve small sellers who have less than $5 million in revenue. “The fact that transactions in the industry don’t typically require venture capital or investment bank financing, both scarce due to the decline in capital markets, partly explains why there’s no slowdown.”

For more information on M/E firm market trends, visit www.zweigwhite.com .

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