“Merger and acquisitions transaction activity picked up in the second quarter of 2010,” says Mike Rosendahl (PCE Investment Bankers).  A number of factors are driving the increase, he believes:

“The economy continued to show modest signs of improvement, debt markets became more active and valuations remained strong for companies that performed well.  Additionally, a segment of business owners are motivated by pending tax law changes that will increase taxes and lower net proceeds after 2010, unless there is an extension of the Bush tax cuts. As a result, companies are evaluating liquidity alternatives resulting in the uptick in transactions. For companies that are performing well this is a good opportunity for shareholders to maximize the proceeds from a sale.”

For the full report, “State of the M&A Markets, 2nd Quarter 2010,” including the latest, year-end, summary transactions data, contact Rosendahl directly or check PCE’s Investment Banking page.