M&A looking up in 2011

Excerpts from Private Equity Professional Digest 1/13/11
Private Equity fund managers expect to close more deals in 2011 than 2010 according to the annual Perspective study by BDO USA. Half of the respondents expect to close three or more deals during the next 12 months. That's compared to only 31% who reported closing three or more deals in 2010. More specifically, nearly 40% of the respondents expect to close between 3 and 5 new deals in the coming year, while only 16% reported closing 3 to 5 deals during the past 12 months. However there is not an expectation that deal flow will bounce back to pre-recession levels any time soon. According to the study, 69% of the respondents do not expect deal flow volume to return to 2007 levels until 2010 or later. A full 18% of the respondents believe that deal flow will never return to 2007 bubble levels!
Manufacturing is in! Private Equity professionals see the greatest opportunities for new investments in the next 12 months in Manufacturing (37%) followed by healthcare and biotech (23%), completing out the list are, natural resources and technology 11%, financial services 9%,  retail and distribution 6% and media/information 4%.