M&A REPORT -- New Era of Consolidation

"We remain cautious about large strategic acquisitions, as we still lack good visibility into the short- term market strength and therefore projections on project returns," Lane adds. "As well, there is a valuation gap created whenever there is market weakness, as buyers become cautious and sellers project a quick return to former levels. Over the next six to 12 months, we would look for strong evidence of a broad, sustained recovery to change this outlook."