November 30, 2005

Current Trends in Middle Market M&A

Just posted an interesting interview with Wayne Elowe and Michael Hollingsworth of Kilpatrick Stockton regarding trends in middle market M&A.

For example, they observe that indemnity survival periods may be somewhat shorter these days, but still tend to cover one or two audit cycles; baskets have been ranging between 1/2-1% of transaction value and caps in the 10% to 50% range. Representations and warranties, if anything, have become more targeted on specific aspects of the seller’s business. With the requirements of Sarbanes-Oxley, buyers are also including representations targeting specific compliance issues. More trends are covered in the interview…