Reviewing the Q1 2010 M&A

Private equity activity picked up in the first quarter of 2010. The number of deals increased to 355 up 10% from fourth quarter 2009. Total capital invested during the first quarter 2010 decreased, however, to $14 billion from approximately $18 billion in the fourth quarter 2009.

First quarter 2010 bodes well for middle market deals in the coming months. Deals under $250 million remained the largest percentage overall. These deals accounted for approximately 85% of total deals in the first quarter 2010, slightly down from the total 2009 percentage.

The B2B sector continues to capture the largest share of private equity deals. This sector represents approximately 33% of total first quarter deals. As the economy recovers, all sectors will increase deal flow with B2B expected to remain the largest share. Regulations concerning the financial services industry may adversely affected that sectors share of total.   

 ACG-Thomson Reuters DealMakers Survey

According to the ACG-Thomson Reuters DealMakers Survey, 85% of M&A professionals  believe the volume of M&A deals will continue increasing in 2010. This is a marked improvement over the 56% who were optimistic about the second half of 2009 in last year's survey. Thompson Reuters reports that overall global M&A activity reached a total of $573.3 billion during the first quarter of 2010. This was a 21% increase over the first quarter of 2009. 93% of private equity executives believe the majority of their portfolio companies will experience job growth or at least retain staffing levels in 2010.