Dealmakers have predicted all year that the second half of 2016 would be better for M&A than the first, and the third quarter data indeed shows signs of a turnaround. Q3 generated more completed transactions than Q2, although the volume for the year is still the lowest it’s been since 2009.
Some of the obstacles to closing deals that persisted in the beginning of the year, such as financing challenges, have eroded. Fueling confidence, the U.S. gross domestic product grew 2.9 percent in the third quarter, according to the U.S. Department of Commerce.
Expectations that the momentum will continue, especially since the presidential elections are completed. On Mergers & Acquisitions’ M&A Conditions Index (MACI), leads for new transactions and completed deals delivered their highest scores of the year in October, heralding a strong fourth quarter. And survey respondents say that, barring a major catastrophe, 2017 will be a strong one for M&A.