Mergers and Acquisitions Deals 2010

Dealmakers Predict Uptick in M&A Deals in 2010

Corporate and private dealmakers predict that mergers and acquisitions will increase during the first half of 2010.  This uptick will be led by manufacturing, financial services and health care, according to those surveyed by the Association for Corporate Growth, including investment bankers, private equity professionals, lawyers and other dealmakers.  82% of those surveyed believed that merger activity will increase over the next six months showing a strong confidence in M&A.

Forty percent of those surveyed believe a quarter to half of the deals in that period would be distressed deals, while about 52 percent thought that less than a quarter of those deals would involve distressed assets.

The biggest expected obstacle to deals in the first half of 2010 is expected to be sellers who won’t sell at current multiples, according to 37 percent of survey respondents. About 29 percent of those surveyed were more worried about the credit crunch.

“Business owners are slowly realizing that valuations will not return to what they were several years ago. Private equity and strategic buyers are all too aware of this and are patiently waiting for sellers to come to grips with the new valuation paradigm and to take some money off the table,” Harris Smith, a managing partner of private equity and strategic relationships at Grant Thornton and a past chairman of ACG, said in a statement.

Source

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Tags: Deals, mergers and acquisitions, M and A, M & A, mergers and acquisitions in 2010, 2010 m&a, mergers and deals, private equity deals

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