A recent Citizens Commercial Banking survey of nearly 600 executives at mid-sized U.S. companies found that more than half are actively seeking M&A and capital-raising deals this year.
A recent Citizens Commercial Banking survey of nearly 600 executives at mid-sized U.S. companies found that more than half are actively seeking M&A and capital-raising deals this year.
Rhode Island-based Citizens, which has 45 bank branches across Connecticut, said the survey results indicate that mid-sized companies (annual revenue between $5 million and $2 billion) are seeking significant growth after several years of working to preserve liquidity and repair balance sheets following the 2007-2009 economic recession.
Connecticut's recovery from that recession has been slower than some other states, with private-sector job numbers having just reached pre-recession levels in November.
More than half of the companies surveyed said they felt more confident than they had in the past about outside investment being an appropriate strategy. Companies said their top buying concerns included increasing revenue and putting their cash to work.
Globally, companies spent a record $3.8 trillion on M&A in 2015, according to a recent report by Bloomberg Business.
“Last year's record-breaking $3.8 trillion in M&A, which featured several mega-deals among very large corporations, seems to have had an impact on the thinking of many middle market executives,” Bob Rubino, executive vice president at Citizens Commercial, said in a statement. “Many feel this year could be their year to make a deal.”
Of the 598 companies surveyed in late 2015, 21 percent were located in the Northeast.
– Matt Pilon
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