Middle market mergers to be strong in 2017
The 82-employee Davis Companies staffing services firm in Marlborough is among the middle market that a new study has found will see increased mergers and acquisition activity.
A new report from Citizens Bank is predicting a strong year for mergers of middle market companies throughout the United States and in Massachusetts.
According to the bank’s sixth annual Middle Market M&A Outlook released Wednesday, as we enter 2017 there is an appetite for mergers from both sellers and buyers among companies with annual revenue between $5 million and $2 billion.
The survey of 600 business leaders included several dozen Massachusetts-based CEOs, directors, and partners at companies in industries including retail & consumer products, manufacturing, tech services, and others, according to a representative of Citizens.
“We’re seeing sellers looking for exits and an uptick in buyers seeking growth,” Bob Rubino, executive vice president and head of Corporate Finance and Capital Markets at Citizens Commercial Banking, said in a statement. “This should point to a more robust M&A environment in 2017, though there may be a pause until the impact of the election becomes clearer … There is a sense among some mid-market decision makers that company valuations may not have peaked just yet and that could affect the M&A environment.”
Among this year’s survey results were that 53 percent of respondents either currently involved in or open to considering a deal, compared to 34 percent last year. Demand from buyers is also increasing with 73 percent currently involved or open to considering deals, up from 60 percent last year.
However, it was not all an appetite for advancement, as 58 percent of upper middle market potential sellers fear a significant financial crisis in the next three years, up from 41 percent last year.
Citizens Commercial Banking is the commercial banking division of Providence, R.I.-based Citizens Financial Group.
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