Bridgepoint Midwest M&A Index, Q2-12

MIDWEST M&A INDEX INCREASED TO ALL-TIME HIGH IN Q2
Despite slowing M&A volume in the U.S. and abroad

Des Moines, IA – August 8, 2012 –The number of Midwest companies that participated in a merger or acquisition over the past six months increased again in the second quarter of 2012. After hitting a new high in Q1-12, the index continued its rally, increasing 3.3% to another new all-time high of 119.5. To add to that, deal sizes and valuations increased 24% and 57%, respectively, after both decreased in the 1st quarter.

The current index level reflects continued healthy growth of the local corporate deal volume environment in the face of a relatively stable local economy. 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 22.0% represented the highest increase since 2010.

This news is especially good for Midwest businesses. The healthy growth of deals reflects that corporates and sponsors are increasing their M&A focus on the Midwest and its relatively stable economy, while middle market M&A volumes across the U.S. and abroad have declined so far in 2012. While smaller companies received more attention in the previous quarter, strong-performing and healthy companies received premium valuations in Q2.

“While the deal volumes were choppy in 2011, a stable local economy is allowing Midwest companies to continue to perform – corporate and financial buyers are taking notice and increasing their focus on local companies,” 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 also 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.