This trend of huge over-valuation was at least temporarily corrected
by the tough economic conditions imposed during the
recent "Great Recession." Transaction activity basically ground
to a halt during 2009 and the first part of 2010. However, in
retrospect, 2011 turned out to be quite a surprise in terms of
merger and acquisition activity in the water business. Although
observers had expected general economic conditions to gradually
improve, and although a bit of "pent-up demand" for deal
activity had clearly developed on the part of many acquisitive
companies, few expected the volume and intensity of transactions
that 2011 provided. More significantly, almost no one
projected a return to the huge valuations of the early 2000s -
but deal prices have sky-rocketed once again