Of note for the middle market, the average deal size in the sector significantly declined, highlighting the effects of consolidation in the industry. With many of the big deals seemingly done, the middle market remains ripe for further consolidation. This trend is likely to further continue as the economy continues to weigh on the industry. As we routinely see, strong companies with healthy balance sheets will remain on the hunt for good deals.

The Shake Out

PWC noted that the pace of deals actually increased in the sector during the fourth quarter- a notable departure from most other sectors. Keep on the lookout for consolidation plays as the industry shakes out in the first and second quarters.