Dealmaking activity expanded in January, but the rate of growth was slower than in December, according to Mergers & Acquisitions’ M&A Conditions Index (MACI). The composite score dipped to 51.9 from 55.4. The movement is in keeping with seasonal patterns.
Most components of the index registered growth. The component that measures leads for new transactions was especially noteworthy. At 55.4, the Leads score was more than 17 points higher than the 38.2 of the previous January. The component has shown growth for 12 months now, indicating an abundance of potential future transactions. Survey participants have expressed optimism about M&A in 2017, encouraged by the prospect of lower taxes and fewer regulations.