According to survey conducted by Citizens Bank in September and October, mid-market buyers and sellers are feeling a greater sense of urgency to close a deal going into 2017, though the post-election environment bears watching.

Just prior to the election when this study was fielded, sellers believed the market had reached a peak and valuations wouldn’t hold. Adding to that was an expectation of higher capital gains taxes, which led many to think that their window of opportunity was beginning to close. While 2016 proved that confidence didn’t always translate into action, the survey showed sellers are more optimistic heading into 2017. The survey found that 53% of sellers are currently involved in or open to making a deal in 2017 (up from 34% in 2016), with 25% of organizations saying they are extremely confident that their organization will be acquired in the coming year.

For buyers, there is increased pressure to show revenue growth after an inability to do so organically in recent years, leading to robust buyer interest throughout the market. This belief is evidenced by 73% of buyers indicating they are currently involved in or open to considering making an acquisition (up from 60% in 2016), with 23% of buyers indicating extreme confidence that they will make an acquisition in the next 12 months.

It should also be noted that prior to the national election, both buyers and sellers anticipated little changing in the post-election business environment, regardless of which party was elected. However, early indications are that the reality may be somewhat different. A potential lowering of capital gains and estate taxes, as well as hints of a less restrictive regulatory environment and future stimulus spending, have led to a post-election rise in U.S. equity markets in anticipation of a period of accelerated economic growth. As a result, there is now a growing sense among some mid-market decision makers that company valuations may not have peaked just yet.

Representatives of 600 middle-market companies were surveyed. The complete report is available on the Citizens Bank website.