"The results bolster what Merrill DataSite has experienced firsthand in its virtual data room business throughout 2010; an increasing level of deal flow activity coming out of the private equity shops. There appears be a real sense of urgency to empty the deal pipeline by the end of the year; more so than we've seen in recent history," said Richard Martin Jr., Senior Director of Merrill DataSite.
Respondents cited a variety of factors as the main drivers behind deal flow in Q4 2010. The majority of those polled (40 percent) believe that year-end tax changes will be one of the biggest factors driving deal consummation in the end of 2010. Slightly more than one quarter (26 percent) cited private equity overhang, or the need to put funds to work, as a main driver of deal flow in the final quarter of 2010 as well.