Dealmakers expect overall transactions to increase significantly over the next quarter and over the next year, and M&A in the manufacturing sector to rise even more dramatically, according to the Mergers & Acquisitions Mid-Market Pulse (MMP), a predictive barometer that measures sentiment about future dealmaking activity in the whole market as well as in specific industries. (See related graphic.)

The composite score of 81.8 for manufacturing in the 12-month forecast shows expectations run particularly high for the sector in the long term, a trend fueled by the rise of medical devices and other innovative technologies currently thriving in the U.S. manufacturing industry.

Regulatory and tax issues are expected to have less impact on the manufacturing sector than on the health care sector, which we examined in the previous month. Sponsored by McGladrey, the MMP is derived from monthly surveys of approximately 250 executives at private equity firms, investment banks, lending institutions and advisory firms in accounting, law and consulting.

Based on a set of recurring questions and focused on a different sector each month, the MMP is a leading indicator for potential changes in momentum in M&A activity.

For more data on deal flow, see Q1 Deal Value Reached Highest Level Since 2008.

To participate in this month's survey, click here.

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