M&A Environment in 2012

Owners that have comfortably existed in default for 2011 may be surprised to find a renewed vigor from their banks' workout departments in 2012. Institutions that have been diligent in moving bad loans through note sales or aggressive workout departments may be in a better position to force the issue, calling defaulted notes, thus spurring some increased sell-side activity. While stronger banks may not be welcomed by managers of struggling companies, stronger banks tend to promote a healthier economy in the long run by lending when appropriate, and thinning the herd through swift exercise of their rights and remedies.