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There has been a dramatic drop in corporate bankruptcies and stock deals overall, while mergers and acquisitions by mid-size – or “middle market” – companies have strengthened over the last eight years, according to Jenner & Block Partner Thaddeus J. Malik at a recent M&A conference for attorneys, bankers, venture fund members and other financial professionals.
“Volume of M&A activity increased in 2004, and does not show signs of slowing in 2005,” he told the conference attendees at the Illinois CPA Society’s 2005 Mergers & Acquisitions Conference held on October 11, 2005 at the UBS Tower in Chicago.
The increase in middle market M&A activity can be attributed to strengthened financial performance of companies in this sector, improved senior and record-setting second lien credit markets, and increased strategic acquisition activity, among other things, he said.
Mr. Malik gave his in-depth analysis of middle market trends in mergers and acquisitions along with E.W. (Sandy) Purcell, Managing Director of Houlihan Lokey Howard & Zukin.
Later in the conference, Partner Geoffrey M. Davis joined IRS Tax Specialist Barry N. Cooper and Ron Stein, Director of Deloitte Tax, to present part one of a two-part session on advanced tax issues. The panelists discussed the fundamentals and types of transaction costs involved in corporate mergers and acquisitions, as well as techniques used to comply with IRS requirements.
In Mr. Davis’s second session, he addressed mergers with disregarded entities and private annuity transactions.