A Record Year For Aftermarket Mergers And Acquisitions

There was a record merger and acquisition volume through the third quarter of this year, reports The Aftermarket Analyst.

The publication reports 94 recorded transactions representing a 6% increase year-over-year from the 89 transactions recorded over the same period in 2007, and a 15% increase over the 82 transactions through the third quarter of 2006.

The aftermarket was already the object of a record number of merger and acquisition transactions in 2006 and 2007, the report says.

The most recent quarter saw a flurry of activity with 37 recorded transactions versus 34 transactions in the third quarter of 2007. “This growth can be attributed to the significant increase in participation by strategic buyers, who are attempting to grow via acquisition during these challenging times,” says the publication.

Notably, there was relatively little activity by financial buyers and private equity groups due to the tightening credit market, with their relative role cut effectively in half, down from a third of the total to about 15% in terms of overall transactions for the year.