Its no secret that the M&A market has been tough the last few months. It’s also no surprise that M&A bankers and lawyers are predicting a drop in the market from the heady heights of 2007. How much of a decline to expect is up for debate.

Prominent lawyer Martin Lipton says in a research note he’s not optimistic, as he predicts a decline of more than 25 percent. That’s not inconsistent with the rest of the market though.

But its not all bad. Several of the factors that boosted M&A in 2007 will continue in 2008, Lipton thinks, such as the desire of some countries to create “national champions” in basic industries; the dismantling of defenses against hostile takeovers and the arrival of mergers and LBOs in countries that until now have had little such activity.

Merger Mondays have also returned to some degree the past few weeks, with a number of big deals announced today as people try and get deals done before the holidays. M&A may be down, but its not yet out.