M&A Down, Not Out

I agree that M&A is by no means out in 2008. We are seeing increased activity in the lower to middle market across several industries and, obviously, in the chemical industry. Valuations from Q3 2007 to Q2 2008 will be lower by about a turn to a turn and a half depending on sector. One major reason for lower average valuations is a surge in smaller deals, which typically are discounted for size. From our view point in the middle market, the number of deals have and will continue to increase, despite the recent retreat due to credit difficulties.