• 02 Apr 2013 at 1:59 PM

M&A Bankers Developing Serious Jealousy Of IPO Guys

Investors are game for a shopping spree. Corporate executives are less so. In more ways than one.

In the first quarter, 36% of U.S. IPOs were priced above the range originally outlined in registration documents filed with the Securities and Exchange Commission. That was the highest proportion in any year since at least 2004, according to Renaissance Capital, an IPO research and investment-management firm.

Meanwhile, less than one quarter of IPOs so far this year have priced below expectations, also the lowest rate in at least 10 years.

Only 8,115 deals were announced worldwide in the first quarter of this year, the lowest number since 2003, according to data from Thomson Reuters. And while the combined value of $542.8 billion outpaced last year’s first quarter by about 10 percent, it is still 26 percent below the level for the period in 2011.

Bankers and lawyers have been publicly boasting about a nascent revival in mergers. In March, 97 percent of deal makers surveyed by the Brunswick Group public relations firm said they expected more deals to be announced in North America this year than in last.

But privately, many have conceded that for all of the improvements in the economy and corporate profits, executives still lack the confidence to sign for a big deal.

IPO Pricing Signals Surge In Demand [WSJ]
Mergers Slowed to a Snail’s Pace in the First Quarter, the Fewest Since 2003 [DealBook]
Investors Ignore Negativity at Their Peril [WSJ]

10 comments (hidden to protect delicate sensibilities)
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Comments (10)

  1. Posted by Guesto | April 2, 2013 at 2:16 PM

    But whos jealous of Shazar?

  2. Posted by Jon = vegetable | April 2, 2013 at 2:23 PM

    In other news, Jon Shazar developing serious jealousy of Matt's ability to generate original thought and/or commentary. Bang up job Shazar!

  3. Posted by Hakuna Matata Guy | April 2, 2013 at 3:18 PM

    How much do they pay you to copy/paste an article and add a sentence of your own thought? This is brutal. What has happened to this site? As you know, I tend to have a bright outlook on life, but what happened here!

  4. Posted by Mara Salvatrucha | April 2, 2013 at 3:29 PM

    Jon always allows us to do his mom, so we let him copy paste one of our tattoos on his arm

  5. Posted by guest | April 2, 2013 at 3:29 PM

    In other news, blind guy is jealous of one-eyed guy.

    M&A and ECM still overbuilt at most IBs, and it's painful.

  6. Posted by Guest | April 2, 2013 at 3:34 PM

    Matt, take it easy. It wasn't that long ago that YOU were the olestra of Dealbreaker.

  7. Posted by Quant Bot | April 2, 2013 at 3:58 PM

    Original / Copied Ratio: 17 / 197 = 0.086


  8. Posted by Guest | April 2, 2013 at 4:42 PM

    That ratio may be a little high depending on one's definition of "original."

  9. Posted by M&A Guy | April 3, 2013 at 9:18 AM

    Hey Shazster, a lot of Q1 '13 deals got pulled into Q4 '12 because business owners and exec's were trying to avert major tax increases. Please don't Ctr+c and then Ctr+v this without proper citation.

    – M&A guy

  10. Posted by guasto | April 3, 2013 at 11:11 AM

    firemen getting pussy for the first time in the history of fire. or pussy.