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V O L . X X V I I I N O. I I I F E B R UA R Y 7 , 2 0 2 2 12 B U S I N E S S M A I N E B U S I N E S S M A I N E B U S I N E S S N E W S F RO M A RO U N D T H E S TAT E Why choose us for your lending needs? Because with us, local really does mean local. We understand that our customers want personalized service with modern banking conveniences – and you don't always get both from a big-box bank. No matter what you're in the market for, we have the fl exibility of a local community bank that can't be matched. And, we make all decisions locally. We're Maine Community Bank – on your corner and in your corner. Contact us today! 1-833-762-0313 mainecb.com 'Frothy' economy seen driving Maine M&A activity in 2022 B y R e n e e C o r d e s A fter last year's pickup in mergers and acquisi- tions involving Maine companies, experts predict continued momentum in 2022, in a myriad of sectors from health care to hospitality. The bullish sentiment comes after an increase in both inbound and outbound deal activity, as reflected in data compiled for Mainebiz by Dealogic, a global financial markets platform headquartered in London. Records show that the number of mergers and acquisitions initiated by Maine companies with out- of-state peers jumped from five transactions in 2020 to 19 in 2021, while the value of those transactions rose by 30% to $862.48 million in 2021. During the same period, the value of so-called inbound deals, initiated by out-of-state companies joining with Maine peers, rose by 29% to $486.7 million. But the number of deals stayed relatively flat — indicating a higher average value per deal. Maine-based corporate advisors expect strong traction again in 2022. "With the economy being as frothy as it is right now, companies are trying to figure out whether to buy or do something else with their capital," said Jason Howe, a Portland-based partner in Preti Flaherty›s business and real estate practice groups. For companies thinking of buying, he recommends doing so sooner rather than later, given financial mar- ket volatility. "If they wait much longer, then it will be harder to get appraisals and go through the due diligence process," he told Mainebiz. Howe said he's currently seeing more acquisitions than mergers, and expects to see that trend continue in sectors including manufacturing and hotels, especially waterfront locations and with owners nearing retirement age. "A couple of hotel chains I work with are very bull- ish about the opportunities out there right now, and they are acquiring ... I would expect that to continue." Likewise, Verrill partner Christopher Smith said that while his firm tends to observe stronger deal activity in Massachusetts and Connecticut, "we see — and hope to continue to see — strong activity by Maine standards for at least the near term." Smith attributes the scenario to a couple of rea- sons. Those include aging business owners wanting to sell a family business, or growing businesses looking to strategic acquisitions as the best way to expand their labor forces and/or customer bases. "There's a lot of money out there, on the part of both investors and lenders, looking for a place to go," he said, "and therefore opportunities on both the buy- and sell-sides." Filing Year Deal Value No. 2010 $116.23M 18 2011 $216.07M 20 2012 $1,004.80M 21 2013 $262.25M 19 2014 $258.77M 21 2015 $3,588.07M 22 2016 $300.4M 24 2017 $1,461.60M 35 2018 $627.48M 23 2019 $1,788.47M 30 2020 $376M 15 2021 $486.7M 14 Filing Year Deal Value No. 2010 $6,618.05M 7 2011 $749.02M 15 2012 $533.27M 31 2013 $31.4M 15 2014 $546.2M 19 2015 $1,581.92M 18 2016 $125.39M 9 2017 $56.97M 13 2018 $333.1M 10 2019 $507.5M 21 2020 $661.5M 5 2021 $862.48M 19 S O U R C E : Dealogic MAINE M&A VOLUME BY YEAR INBOUND OUTBOUND B I Z M O N E Y M&A activity initiated by Maine companies with out-of-state peers jumped from five transactions in 2020 to 19 in 2021.

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