Merrill Datasite Survey: Sixty Percent Of Survey Respondents Expect M&A Activity To Increase Over Next 12-18 Months

Online, June 7, 2010 (Newswire.com) - NEW YORK, May 3, 2010 - 2010 should see a major rebound in M&A activity, according to a recent survey of senior M&A professionals conducted by Merrill DataSite®, a subsidiary of Merrill Corporation.

While 2009 saw a decline of nearly 40 percent in mergers and acquisition activity, more than 60 percent of survey respondents reported that they expect their company's M&A activity to increase over the next 12 to 18 months.

More importantly, an overwhelming 86.1 percent of survey respondents indicated that overall there is good value in today's M&A market which could indicate the potential for increased deal flow.

"Since the beginning of 2010, Merrill DataSite has experienced a tremendous increase in the number of M&A transactions hosted on our VDR (virtual data room) platform, driven by both new and existing users. Further evidence of increased M&A activity is supported by a 40% increase in total page volume on DataSite at the end of March, compared to the same period last year," said Paul F. Hartzell, Senior Vice President, Merrill DataSite. "We believe that the increased activity is the result of a firming up of the economy, bolstered by pent-up deal demand, coupled with a strengthening of the capital markets."

According to the survey, 53.1 percent of the respondents indicated that the overall value of their company's acquisitions in 2010 would be less than $25 million; 17.2 percent and 15.1 percent indicated ranges of greater than $50 million but less than $500 million and greater than $25 million but less than $50 million, respectively.

• Within North America - 46.9 percent expect transactions of less than $25 million; 21.6 percent expect transactions of greater than $50 million but less than $500 million; 14.1 percent expect transactions of greater than $25 million but less than $50 million.

• Within Asia - 40.6 percent expect transactions of less than $25 million; 21.2 percent expect transactions of greater than $50 million but less than $500 million; 19.8 percent expect transactions of greater than $25 million but less than $50 million.

• Within Europe - 44.8 percent expect transactions of less than $25 million; 18.9 percent expect transactions of greater than $50 million but less than $500 million; 16.1 percent expect transactions of greater than $25 million but less than $50 million.

Approximately 42 percent of respondents indicated that cross-boarder/overseas acquisitions are somewhat important for their companies in 2010. Of those that indicated that cross-boarder/overseas acquisitions are a top priority (20.5 percent), 38 percent work in the consumer products industry.

The survey indicated that the major currency used to make purchases would be a combination of stock and cash (49 percent) or solely cash (48 percent). By industry, industrial products (46 percent), energy (45 percent) and consumer products (39 percent) indicated that cash would be the primary currency used to make a purchase.