The survey however also points out that private equity professionals are concerned the easy availability of debt financing that has helped fuel the record number of transactions will tighten. Nearly 70% in the ACG/Thomson DealMakers Survey say the debt markets will be worse in the next year.
Distribution M&A experts have shared the same concern with MDM, saying that it's likely that record valuations will plateau in the next year or two. Valuations are in part a reflection of the huge amount of money raised by financial buyers. As Vetus Partners' Jim Miller said during a recent MDM audio conference, the pressure is on to deploy this capital.
"Not only is there more equity, not only are the debt markets continuing to be liquid, but more of that capital is dedicated to distribution than even last year, which was at a record high," he says. More than 100 private equity funds are actively targeting distribution.
More information on distribution M&A can be found in the MDM Special Report: Distribution M&A Update 2007, a compilation of MDM reporting on M&A trends.
