By TIERNEY PLUMB
Washington Business Journal

Confidence in the U.S. mergers-and-acquisitions market is starting to rise, according to Dykema's fifth annual outlook survey.

The law firm's survey of 105 bankers, executives and advisers asked about the future of the market, cross-border deals and the general strength of the economy.

In 2008, only 16 percent believed the mergers and acquisitions market would be strong in the following year, down from a high of 63 percent of respondents in 2006. This year, 28 percent of respondents predicted a strong market and just 19 percent had a weak outlook.

Continued disorder in the global financial markets is causing 80 percent to predict a boost in distressed transactions in the coming year.

"Industry executives believe a number of distressed transactions remain in the pipeline, which means opportunities will be available in 2010 for buyers with cash and financing," said Jin Koh, corporate finance practice group member for Dykema.

Respondents are split on the issue of how the government's actions within the past year have impacted the U.S. M&A market, with 27 percent thinking the feds have made a positive impact/increased activity and 22 percent think it has made a negative impact/decreased activity. Half think the government's actions have made little to no difference.

Buyers are expected to again decrease their presence in the M&A market more than strategic and foreign buyers, say 54 percent, and 51 percent think strategic buyers will increase their presence in the market.