Firmex/Mergermarket Study Reveals 2016 Ripe with Opportunities for North American M&A, Despite a Few Concerns

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A possible postponement of raised interest rates by the Fed and the upcoming US presidential election remain questions.

“We’ve worked with deal-makers in the middle-market for many years, and it’s our pleasure to add some analysis and clarity on the space heading into 2016.” - Mark Wright, VP Marketing of Firmex

Cheaper financing, bottomed-out oil prices and healthy private equity interest could spur North American mid-market M&A in the next year, according to the Q4 edition of Mid-Market: North American M&A 2016 Outlook, presented by Firmex and Mergermarket.

The report, comprised of interviews with five leading M&A experts based in the US and Canada, suggests a positive dealmaking environment ripe with opportunities for North America’s mid-market over the next 12 months.

“We’re excited to produce the latest edition of this report,” says Mark Wright, VP Marketing of Firmex. “We’ve worked with deal-makers in the middle-market for many years, and it’s our pleasure to add some analysis and clarity on the space heading into 2016.”

In terms of sectors to watch, healthcare, energy, and technology will likely continue to see a high volume of transactions, the experts say in the report.

The report also features an editorial by Tom Stewart, Executive Director of the National Center for the Middle Market. He points out that companies in the mid-market have been a pillar of economic strength in recent years, thanks partly to their tendency to play a long game and make acquisitions only when truly necessary. “Instead of overburdening themselves with debt or outside capital to grow, many mid-market firms prefer to pay down debt and self-fund,” he writes.

The report finds political uncertainty in the US a major factor underlying mid-market anxieties.

Additionally, speculation on whether the Federal Reserve will postpone a rate rise until mid-2016 have some experts questioning how this uncertainty will affect mid-market M&A in North America.

“The Fed’s decision around interest rate policy clearly impacts volatility in both equity and debt markets,” says David Horing, Managing Director at American Securities. “It’s hard to see sustained rate rises happening over the next 12-18 months. This is partly because the environment is relatively fragile, but it’s more the psychological role—the idea that interest rates can add volatility to the market—which would have the potential to slowdown activity.”

The complete report is available for download at:

Mergermarket, part of The Mergermarket Group, is an unparalleled, independent M&A intelligence tool used by the world's foremost financial institutions to originate deals. It provides proprietary intelligence on potential deal flow, potential mandates and valuations via the world's largest group of M&A journalists and analysts who have direct access to the most senior decision-makers and corporates. The Mergermarket Group has over 450 employees worldwide and regional head offices in New York, London and Hong Kong. Visit us at

Firmex is a global provider of virtual data rooms and a secure document sharing platform. From its Toronto, Canada office, the company helps run over 10,000 new data rooms a year with more than 75,000 companies worldwide trusting Firmex as their virtual data room provider. Millions of documents are exchanged each year using Firmex, supporting processes that include financial transactions, mergers and acquisitions, corporate governance, regulatory compliance, litigation, and procurement. For more information, go to:

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Mark Wright
Firmex Virtual Data Rooms
+1 (416) 840-4241 Ext: 281
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