Firmex M&A Deal Activity Jumps 24% in March
Author: Joel Lessem
Looking at Firmex M&A Deal Activity for Q1 2010 we were able to identify a 24% jump from February to March 2010, eclipsing the fall market-peak in November 2009.
March numbers are up 24% over February which was only up 3% from January activity. This is a significant increase from what appeared to be a sluggish start to the year.
The vast majority of Firmex user activity comes from preparing or reviewing due diligence information for M&A transactions. With over 3,000 open data rooms and tens of thousands of active participants, Firmex user activity is a strong indicator of deal interest.
Over the past several years, deal activity has been affected by seasonality as volume tends to increase slightly in the spring and fall months. The exception to this trend was Q4, 2008 which saw a 20% decline in activity from the summer months due to the stock market crash. March 2010 M&A activity has now eclipsed the fall market peak in mid-November 2009.
With Firmex, M&A advisors and corporate development staff can create an unlimited number of virtual data rooms and an unlimited number of documents. While credit is tight, deals can take longer and closing them is not assured - it’s important to have diligence documents organized ahead of time so that the process is not interrupted once the LOI is signed. Firmex clients have the flexibility to keep the diligence documents online for an indefinite period to time, in case the deal stalls and starts up again at a later date. “Our M&A clients are in the business of finding and closing deals, Firmex provides the most convenient online deal room tools to make that process convenient and help them maintain the deal velocity” says Aaron Booth VP Sales at Firmex.
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Intuitive, affordable, pervasive – thousands of companies choose Firmex Virtual Data Room (VDR) solutions to securely share their highly confidential documents. Leaders in corporate and financial transactions, M&A, compliance, litigation, and procurement value Firmex’s ease of use and outstanding support to profitably accelerate their online document sharing and collaboration projects. More information about Firmex can be found at www.firmex.com.