Compass Report--The State of M&A

There are fewer active buyers for private companies. "The Compass Report—1999" Deal Log contained 186 transactions completed by 65 different buyers. This year's report contains 131 deals completed by 39 buyers. Many of the 65 in 1998 and many of the 39 in 1999 were strategic buyers who made only one or two acquisitions for market share or vertical or horizontal integration purposes. These buyers differ from consolidators who employ a rollup and earnings growth strategy to build value.