M&A is an infrequent occurrence among business development companies (BDCs). “Under the external management model, the opportunity for material cost savings is limited, and prices at or near NAV indicate that investors assign little ‘franchise’ value to the lending and origination platforms.” Travis W. Harms, of Mercer Capital’s Financial Reporting Valuation Group, discusses the recent acquisition of MCG Capital (MCGC) by PennantPark Floating Rate Capital Ltd. (PFLT) and how it is “likely the exception that proves the rule.” Find out more in the Mercer Capital’s Financial Reporting article, A Capital Raise in Acquisition Clothing? This article is republished from Mercer…