Report suggest state M&A activity may be on the rebound

Another sign of the weak economy this year: Wisconsin merger and acquisition activity in the second quarter was the lowest in the past decade, according to figures compiled by Anderson/Roethle, a Milwaukee-based advisory firm.
But the slowdown in activity appears to have stabilized, according to the firm’s Wisconsin Merger & Acquisition Report.
Anderson/Roethle said the second quarter saw 24 M&A transactions, the same number as were closed in the first quarter.
Since 1991, the highest volume of M&A activity during the second quarter was in 1998 when 79 transactions were recorded. Last year, 50 deals were recorded in the second quarter.
Each of the 24 deals for second quarter 2001 were in the manufacturing/service sector. the banking industry did not have any transactions close in the second quarter. Three banking deals were closed in the first quarter of the year.
While the activity was limited, the report notes that Wisconsin companies purchased six out-of-state firms and five foreign-owned firms. Only four of the 24 transactions in the second quarter took Wisconsin revenues outside the state.
The firm reported that 25 transactions were pending for the third quarter. With two months left to go in the quarter as of the preparation of the report, the firm said “it appears the downward trend in M&A activity may finally make an upswing.