The document summarizes M&A outlook and trends for 2014. Strategic acquirers and private equity firms have large cash reserves and access to low interest rates, fueling increased deal activity in 2014, especially in the middle market. The sectors expected to see the most deal activity in 2014 are healthcare, technology, energy, and manufacturing. Valuations remain high across industries, though some uncertainty remains around regulatory changes and energy prices. Leveraged buyouts using debt remain popular transaction structures.