PI 400 -- M&A Activity - Acquisitions Yield To Slow Economy

The eventual success or failure of Kelmscott and Nationwide remains in the hands of their managers and customers. I am told that Nationwide is performing well and has benefited from a change in direction, which has moved the company heavily into the profitable fulfillment business.

Private company buyers, strapped by a weak economy and an unfavorable lending environment, find it too difficult to finance deals. The weak economy and bad lending decisions have caused banks and other lenders to severely constrict their lending ratios to 21⁄2 times EBITDA of the target company.