Deal pace flat so far this year

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People keep talking about the likelihood of more deals being struck now that the credit crunch seems to be waning a bit. The financial sponsors especially are sensing big deals. Strategic buyers are also looking at their options in a low-rate environment. Goldman Sachs (NYSE: GS) went so far as to predict a perfect storm for mergers and acquisitions (mergers and acquisition news). But so far, we've haven't seen a huge spike.

Reuters notes that after declining 41 percent in 2008 and 22 percent in 2009, deals so far in 2010 are down just 1 percent compared to last year's pace. That pattern is in line with the last two recessions, but that is good news, in a way.

"Considering the depth of the latest recession compared to the prior two, one might think dealmakers would still be in hibernation," said Reuters. With rates this low, it would be a shame if more deals didn't emerge. You can bet the bankers are working overtime to make them happen. My guess is that we'll see more deals materialize in the second half of the year.

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