The stock market plunge yesterday is another clear indication that financial markets abhor uncertainty. Whether unchecked growth of government debt or unresolved corporate and personal federal tax policy, each of these, together with their European counterparts, have contributed greatly to yesterday’s market reaction. Unfortunately, the Federal Government’s tortured decision making of the last few months is expected to persist..
However, the Middle Market and Lower Middle Market for M&A remain strong and robust. There continues to be clear signs that bank credit and private equity availability, as well as corporate acquisition appetites, are strong and supported by substantial available liquidity. These capital providers remain eager to commit to quality deals for well run U.S. companies.
So, in spite of the side show in Washington and on Wall Street, Main Street USA is alive and well and deals are getting done at a robust rate. And while there might be some hesitation, the dynamics for a strong M&A market remain constant and will most likely improve as investors move away from public markets as they grapple with further adjustments.
Comments or questions are welcome and I’ll be happy to respond accordingly.
Posted by Peter Moore.