Lincoln International Completes 12 M&A Transactions in September and October 2008, Despite a Challenging Market: Seeing increase in need for restructuring advisory
October 31, 2008 — Lincoln International, a leading global mid-market investment bank, has announced that it has completed 12 M&A transactions since September 1st of this year. At a time when overall M&A activity is declining, particularly in the United States, the firm’s recent successes are evidence that despite the challenging market, deals are still getting done.
The firm completed eight transactions in the month of September, five of which were closed after the United States government seized control of the mortgage giants Fannie Mae and Freddie Mac, causing further trepidation about the state of the U.S. credit markets and the global economy.
“Obviously, these are tougher times than we’ve seen in years, and unprecedented changes are taking place in the financial markets,” said Jim Lawson, Managing Director and Co-Chairman of Lincoln International. “But staying focused on the mid-market and having offices in nine locations throughout the key economies of the world are qualities that we believe differentiate us as a firm, as well as help to insulate us in challenging conditions.”
Eight of the 12 transactions closed between September 1st and October 31st were completed with companies based in the United States. The remaining four transactions involved targets and acquirers based in Germany, Switzerland, Ireland and the UK.
Two of the 12 transactions were restructurings, one of which involved a company in a distressed situation that required a closing within three weeks from the time that buyers were contacted, and resulted in the saving of 250 jobs.
“Reminiscent of economic downturn in 2001, we are seeing an increase in activity on the restructuring side of the business,” said Patrick Goy, Managing Director and Co-Head of Lincoln International’s Restructuring Group. “What’s different this time around is that more international buyers are taking advantage of acquiring attractively valued U.S. business assets in bankruptcy. For instance, earlier this year we sold companies out of bankruptcy to buyers in India and South Korea.”
Goy attributes this increase in foreign interest in distressed U.S. companies to long-term globalization trends coupled with reduced competition from private equity acquirers who rely on debt financing.
“Clearly, having access to potential acquirers in Europe and Asia is a huge advantage for U.S. companies right now, and we’re just glad that we can bring that to the table,” Goy said.
About Lincoln International
Lincoln International specializes in merger and acquisition services, debt advisory services, UK pension advisory services and providing fairness opinions and valuations for leading organizations involved in mid-market transactions. With offices in Chicago, Frankfurt, London, Los Angeles, Madrid, New York, Paris, Tokyo and Vienna, and strategic partnerships with China Everbright in China and ICICI Securities, Inc. in India, Lincoln International has strong local knowledge and contacts in the key global economies. The organization provides clients with senior-level attention, in-depth industry expertise and integrated resources. By being focused and independent, Lincoln International serves its clients without conflicts of interest. More information about Lincoln International can be obtained at www.lincolninternational.com.