Economic and political uncertainty have put a damper on middle-market M&A activity all year, and professionals in the business do not expect a rebound anytime soon, according to the most recent reading of Mergers & Acquisitions’ Mid-Market M&A Conditions Index (MACI) and Mid-Market Pulse (MMP).
The May composite score for the MACI was 48.7, a decline from the 52.0 reading it registered in April. (See related chart, M&A Conditions Composite, May 2016.) The index was dragged down in part by a sharp contraction in the component that tracks divestitures, as a burst of deals by large companies to jettison non-core business lines slowed. (See related chart, Month to Month Trends.)