Dealmaking down in Georgia in first half

Merger and acquisition activity declined in Georgia in the first half of 2012, although the value of deals increased.

The independent mergers and acquisitions intelligence service, mergermarket, said there were 47 deals in Georgia from January through June, a 20.3 percent decrease from the first half of 2011 when there were 59 deals.

However, the value of those deals was $5.8 billion, representing a 26.4 percent increase over the same period last year when the value totaled $4.6 billion.

“Although Georgia saw M&A announcements fall off in the first half of the year, the state’s dealmakers are hopeful for a more active second half,” said Chris Marr, of mergermarket. “M&A advisors tell me they’re seeing a good flow of companies coming up for sale, partly motivated by the threat of a capital gains tax increase in January.”

Marr said that, “Business owners who had been thinking about selling now see a looming deadline, even though Washington could opt to extend the tax cuts again, as happened in 2010.”

The biggest deal in Georgia in the first half was Bristol-Myers Squibb’s January acquisition of Inhibitex.