Uncertainty will continue to cause most dealmakers to shy away from large transactions in 2014. But the middle market will host plenty of M&A activity, driven by a strong deal financing environment and companies with an abundance of cash on hand. Deals will flow from sectors that are undergoing rapid change, especially the energy and health care sectors, says Robert Profusek, global head of M&A at law firm Jones Day. Profusek has worked on the Continental-United Airlines merger, Procter & Gamble Co.'s (NYSE: PG) sale of the Pringles business, the merger of International Steel Group and Mittal Steel, and many other deals.
Can you describe the current climate for middle-market M&A?