Allegiance Capital President, David Lonsdale predicts 2013 will be the Year of the Strategic Acquirer

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While 2012 was a year of uncertainty in the mergers and acquisitions markets, David Lonsdale predicts 2013 will emerge as the year when strategic acquirers take center stage.

Allegiance Capital Corporation Mergers acquisitions Mid-Market
“Uncertainty overshadowed the M&A market in 2012. However, we see 2013 as the year of the strategic acquirer." David Lonsdale - President Allegiance Capital

“Uncertainty overshadowed the M&A market in 2012,” according to David Lonsdale, President of Allegiance Capital. “However, we see 2013 as the year of the strategic acquirer.” (Video)

In 2012, M&A activity fell far short of predictions due to the uncertainty of the elections, the fiscal cliff and a slowly recovering economy. “We had some strong driving forces in the market in 2012,” Lonsdale explains. “There was funding available through private equity groups and strategic acquirers. Debt availability was very favorable, and the looming increase in capital gains taxes in 2013 all pointed to what we thought would be a strong year. However, the factors I mentioned earlier kept many potential sellers out of the markets.”

2013 promises to be a much better year for M&A. The driving forces that existed in 2012 continue. Money is still available from both private equity groups and strategic buyers. Companies can still borrow at historically low rates, and the U.S. economy is even stronger.

Allegiance Capital expects to see a 2.5% increase in GDP in 2013. Many businesses that delayed hiring and purchasing decisions last year are moving forward this year. There is tremendous interest from strategic buyers from the European markets. Europe is still facing a lot of uncertainty due to the debt crises there, and foreign strategic buyers are looking at U.S. companies as a safe bet for the future.

“We truly see 2013 as the year of the strategic acquirer," concludes Lonsdale. RR Donnelly has even predicted that 80% of the acquisitions in 2013 will be made by strategic buyers. As the economy continues to recover, private equity groups will also continue to play an important role in M&A. However, strong, strategic companies will have the upper hand as they seek to expand operations in the most efficient manner possible in the strongest, safest economy in the world.

About Allegiance Capital Corporation
Allegiance Capital Corporation is an investment bank specializing in financing and selling businesses in the lower middle market. Allegiance Capital Corporation was recently named to American City Business Journal’s distinguished list of Who’s Who in Energy 2012, in addition to being named third on the list of 2011 Largest Investment Banking Firms in North Texas (Dallas Business Journal). Allegiance Capital Corporation has won multiple awards recognizing the value it delivers to clients. Examples include: 2009 Dealmaker of the Year (Dallas Business Journal), 2008 Boutique Investment Bank of the Year (M&A Advisor), and 2006 Investment Bank of the Year (Dallas Business Journal). Subscribe to the Capital Ideas blog by visiting: Follow Allegiance Capital Corporation on LinkedIn and Twitter: @ALLCAP.

Media Contact:
Bruce R. Condit
Vice President – Director, Public Relations
Allegiance Capital Corporation

Industry Contact:
David Lonsdale
President, Managing Director
Allegiance Capital Corporation

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