Market Update — Fourth Quarter 2006

Market Conditions Favorable
The financing and capital markets performed well in 2006, fueling the expectation that 2007 will be another record year for merger and acquisition (M&A) activity. The general economic outlook, improving corporate profits and stock performance, an abundance of available private equity capital, and growing valuation multiples across many industry sectors have contributed to this unprecedented level of M&A activity. 

U.S. M&A Market Trends
The robust M&A environment in the United States continues to be supported by record levels of private equity investment and the relative flexibility of financing markets. Such trends have enabled buyers and sellers alike to take advantage of their strategic options and enhance corporate and personal value. While some economic indicators may point to a slight slowdown in transaction volume, we feel these trends will continue to propel transaction activity into 2007.

During 2006, a total of 11.750 transactions were announced, an increase of 7 percent over the same period in 2005.  These transactions represented more than $1.4 trillion in total disclosed transaction activity, up from $1.2 trillion of transaction activity in 2005, an increase of 20 percent.

Download the complete 2006 Q4 Market Update.