Announcements11.20.09
Waiting to Exhale
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In Baker’s story on the M&A dealflow starting to pick up with dealmakers being cautiously optimistic but fearful of continued paucity of credit, Landon Smith of Riveron Consulting is quoted as an expert source. Following is his contribution to the story:
But the picture has slowly started to change, says Landon Smith, managing partner at Riveron Consulting LP, a Dallas firm whose primary clients are private equity shops in the lower-middle market. Smith says he has seen substantial uptick in the deal-related work since Labor Day. While dealmaking often increases in the fourth quarter, Smith says he can identify a few issues that point to more secular growth.
Chief among these, he says, is “price rationalization between buyers and sellers.” Especially in the lower end of the middle market, sellers have held out about as long as they can and now need a transaction. Some buyers, meanwhile, have backed off from making fire-sale-or-nothing offers. A few are even willing to pay market rate or above – depending on the business, of course.
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