According to the fourth report in SourceMedia's Mid-Market Pulse (MMP), dealmakers expect M&A in the technology, media and telecommunications (TMT) sector to expand faster than the overall market. The MMP, published by Mergers & Acquisitions in partnership with
"Activity in TMT will gain more quickly than in the overall market and in the financial services sector, but more slowly than in health care and manufacturing," said
The 3-month composite score for TMT was 79.1 compared to 75.1 for the overall market. The intermediate term, or 12-month, forecast put TMT at 79.5 against 70.8 for the overall market.
Each month, the MMP index spotlights an individual industry and presents respondents' expectations for deal activity within that specific sector. This month's index focuses on the technology, media and telecom (TMT) sector.
"Health care is anticipated to be higher than TMT, with a 3-month score of 82 and a 12-month score of 80.5," Flynn said. Manufacturing also will outpace TMT, with a 3-month score of 80.6 and a 12-month score of 81.8. Growth in financial services, however, is expected to be slower than TMT, with a 3-month score of 70.8 and a 12-month score of 74.7.
For a complete analysis of the MMP's most recent data, go to http://www.TheMiddleMarket.com/mmp-TMT.
Inside the MMP
The Mergers & Acquisitions Mid-Market Pulse (MMP) is a monthly barometer of sentiment in the mergers and acquisitions business derived from monthly surveys of approximately 250 executives in private equity firms, investment banks, lenders, and advisory firms in accounting, law, and consulting.
Based on a regular set of recurring questions about expectations and trends across a range of key issues in M&A, the MMP is a leading indicator for potential changes in momentum in M&A activity. Various indicators that make up the MMP include projected deal volumes and pricing, staffing resource utilization levels, and the expected impacts of economic conditions, taxes and regulatory policy on future M&A activity.
Survey responses describe expectations and outlooks for three- and 12-month forward periods to arrive at indicator scores. Respondents also are asked to elaborate on their responses and provide opinions about other conditions that affect their M&A outlook.
A Look at the Number
In the near term, the TMT sector scored higher than the overall market in two components: tax impact and regulatory impact. In the intermediate term, TMT nearly swept the components, ranking higher than the overall market in economic impact, deal volume and deal value, among others.
Most notably, TMT scored 85.8 in regulatory impact compared to 81.3 for the overall market in the 3-month forecast. In the 12-month view, TMT scored 90.9 in deal volume against the overall market's 90.7
What Respondents Are Saying
Survey respondents are encouraged to add verbatim comments to their answers. Many echoed the MMP Index's sentiment about the role taxes will play in M&A activity.
Dealmakers cited a move to the cloud, software-as-a-service, mobile trends and IT/data security as influencers on their positive outlook for the TMT sector.
Others credited the investment environment. "Multiples are high, which makes it a good time to come to the market for sellers," one dealmaker said.
Another added that the "aggressiveness of lenders will lead to loosening loan structures."
While some are wary about regulatory requirements, others point to economic improvement in the TMT sector.
About Mergers & Acquisitions
Mergers & Acquisitions covers all aspects of middle-market dealmaking, including identifying acquisition targets, negotiating transactions, performing due diligence, and closing deals. Serving nearly 18,600 print subscribers, our monthly magazine is published in partnership with the
Read the full story at http://www.prweb.com/releases/2014/08/prweb12065948.htm
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