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Acquisition Survey Jan 2010

2009 will be remembered as one of the most difficult and turbulent years in generations for both the global and domestic economies.

Ireland was, and continues to be, in a significant recession, the impact of which along with the banking realities have impacted hugely on the mergers and acquisitions market for Irish businesses. As 2009 unfolded we experienced the continued downward effects on the industry first noted in the second half of 2008.

Our survey of corporate activity throughout 2009 shows that Irish M&A, which now mostly comprises mid-market deals, has reduced by 49% in volume terms when compared to an already low figure in 2008. While equity valuations on public markets improved considerably during 2009, private company valuations have traditionally lagged public market peaks. There was therefore little incentive for companies to sell other than out of necessity in most cases.

As we look into the year ahead it is likely that many of the transactions in 2010 will be fuelled by restructuring requirements and strategic opportunities. It is anticipated that a need for consolidation and the divestment of non-core assets will continue.

Our annual Acquisition Survey outlines the major activity by Irish acquirers domestically and internationally and the acquisitions of Irish assets in Ireland by international companies.

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