Bridgepoint Midwest M&A Index, Q1-12


Lincoln, NE – April 30, 2012 – The number of Midwest companies that participated in a merger or acquisition over the past six months increased significantly in the first quarter of 2012. The latest increase put the index at a new high of 116.3. However, while the volume of these deals in the region was up, the size of the deals involved was down from the peak in the previous quarter.

The current index level reflects a much improved corporate deal volume environment in the Midwest, after volume has remained relatively flat in recent quarters. According to the Bridgepoint Midwest M&A Index, a measure of corporate merger and acquisition activity in the U.S. Midwest region, the year-over-year Index growth of 17.1% represented the highest increase in the past 6 quarters while the quarter-over-quarter increase of 18.7% was the highest in 9 quarters.

For Midwest businesses, this is good news. The healthy level of deals reflects that corporates and sponsors are increasing their M&A focus on the Midwest, and increasingly on smaller companies. Business owners are again receiving valuations they’re comfortable with after recovering from the 2009 trough.

“Recent strong local volumes reflect the particular relative strength of the Midwest deal environment, as middle market M&A volumes across the U.S. have declined so far in 2012,” said Adam Claypool, Managing Principal of Bridgepoint Merchant Banking.

The current environment represents an attractive opportunity for Midwest business owners to explore liquidity options and suggests that more attractive financing opportunities may be readily available.

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Bridgepoint Merchant Banking is a lower and middle market investment banking and private equity firm that serves clients over their corporate lifecycles by providing merger and acquisition and corporate finance advisory services. Bridgepoint Merchant Banking also invests capital directly into companies through its private equity and venture capital funds.