Mergers & Acquisitions’ Mid-Market Pulse: Energy M&A Poised to Rebound

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Expectations for dealmaking in the sector have rallied after weak 2016 first half

Volatile energy and financial markets have led many companies to struggle in the first half of the year, and dealmakers clearly aren’t counting on things changing before Election Day

Dealmakers expect to muddle through the remainder of 2016 but see a significant rebound in M&A activity coming next year, particularly in the energy sector, according to the August reading of Mergers & Acquisitions’ Mid-Market Pulse index (MMP).

The MMP is a diffusion index that monitors sentiment across a range of mid-market M&A sectors and is derived from a monthly survey of M&A professionals. Readings above 50 indicate that professionals expect an expansion in M&A activity and readings below 50 indicate a contraction.

The MMP is published by Mergers & Acquisitions in partnership with CT, a provider of business compliance and deal support services.

The overall MMP, which assesses expectations across the full range of middle-market M&A activity, demonstrated that dealmakers have little expectation of a major upturn in 2016 but are more optimistic about 2017. The 3-month outlook score was 53.7, while the 12-month forecast was a much stronger 61.8.

Asked specifically about M&A expectations in the energy sector, the three-month score of 52.3 was again indicative of a relatively flat near-term outlook. In contrast, the 12-month score of 76.2 was among the highest tallied in 2016 of any kind for the index.

“Volatile energy and financial markets have led many companies to struggle in the first half of the year, and dealmakers clearly aren’t counting on things changing before Election Day,” said Editor-in-Chief Mary Kathleen Flynn. “However, each successive month of the MMP seems to have brought more confidence about the 2017 outlook.”

Mergers & Acquisitions’ Mid-Market Pulse index was developed by SourceMedia Research with the editors of Mergers & Acquisitions to gauge mid-market mergers and acquisitions activity. The MMP is powered by surveys of Mergers & Acquisitions’ audience of unique and qualified professionals in private equity, investment banking, and law firms, corporations,and other M&A advisory entities. For a complete analysis of the most recent data, visit Mergers & Acquisitions.

The MMP is a forward-looking sentiment indicator that monitors M&A professionals’ expectations for merger and acquisition activity within the middle market over the coming 3- and 12-month periods.

Highlights:

  • Dealmakers are more optimistic about M&A over the next 12 months than the next three
  • Energy’s 12-month outlook of 76.2 was the highest of any sector measured
  • Professionals are looking to the outcome of the presidential election as they weigh the outlook for energy, a highly regulated industry

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 , a unit of SourceMedia, provides research solutions for marketers, agencies and others targeting business sectors such as banking, payments, mortgage, accounting, insurance, employee benefits and investment advisor / 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.

About CT
CT, part of Wolters Kluwer, works with businesses around the world to offer customized capabilities and comprehensive business compliance and deal support services . Drawing on more than a century of experience, CT’s full suite of services can assist you from the beginning stages of due diligence, through the high-pressure stage of closing – offering expertise and continuity at every step of the way.

For more information, please contact:

Dana Jackson                    
Dana.jackson(at)sourcemedia.com    
212-803-8329

Mary Kathleen Flynn
marykathleen.flynn(at)sourcemedia.com
917-915-7190

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