Q3 2008 marked the beginning of unprecedented changes to the global economic landscape that significantly impacted nearly every business and industry. With the stock market suffering its largest decline of the year and trading at six-year lows, the economic turmoil began in Q3 2008 with the federal seizure of Fannie Mae, Freddie Mac, and AIG; the collapse of Lehman Brothers; the sale of Merrill Lynch; and severe restrictions on the availability of credit. The impact of these and other events on plastics and packaging M&A activity was significant as Q3 2008 transactions fell 26.7% against Q2 2008. There were a number of transactions that failed to close due to an inability to obtain financing or because buyers were offered financing at significantly lower levels and at higher pricing. Compounding the negative trend was a decline in company performance due to the economic downturn which lowered valuations and caused many sellers to put transactions on hold until financial performance improves.
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