The pace of middle-market M&A picked up in August, according to the most recent readings of Mergers & Acquisitions’ M&A Conditions Index (MACI). The composite score for the MACI was 53.2, up from 51.8 in July.
August was the third consecutive month to exhibit expansion, adding evidence of a rebound from the slow first half of the year. The scores for new transaction leads and signed letters of intent were high, indicating the earliest stages of dealmaking are seeing a lot of activity.
The healthy early-stage scores bode well for future M&A. The score for completed deals in August was significantly higher than in July, suggesting that some of the obstacles that stalled M&A in the first half of the year may be diminishing.
Financing availability, however, dipped into contraction territory again. That component of the MACI has been contracting throughout much of the year, with the low point being in January when the sudden drop in the stockmarkets cast a pall on lending and on M&A activity. In recent months, the component has fared better.