We have seen that several transactions this year have been a result of delaying transactions from 2011. Have things actually improved or is confidence still as low as it was before? Valuations also seem to be causing a stir amongst some deals e.g. Coty/Avon and more recent Dell and Quest.
the market for mergers and acquisitions and initial public offerings stayed in the doldrums for the first half of the yearThere’s a valuation gap in many of these situations
For the most part, however, corporations continued to seek acquisitions that augmented existing operations. Such transactions are safer and cheaper, and shares in acquiring companies rose after some of these mergers were announced.
Do you think activity will pick up in the M&A and IPO market towards the end of this year and flourish in 2013? Is the ‘stop and start’ nature of the year causing difficulty in providing tempting valuations? Perhaps the trend in the type of M&A activity is changing?
Check out the article here: http://dealbook.nytimes.com/2012/07/02/sour-globa…
hmm. interesting. what do you think?
I think things will improve towards the end of 2012/beginning of 2013. As more transactions get done, confidence should improve. That said, the EU crisis still needs to be sorted out and we have seen that the Asian markets are stronger (yet several IPOs etc are being delayed/ just a completion of what was supposed to happen last year, again due to confidence problems). So the transaction market seems to be staggering. Hopefully a big transaction happens - this should boost up confidence and get things back into motion.
What do you think?
hmmm. i think its all very interesting. now how does the thought of a potential recovery make you feel?
Just watch this: http://www.bloomberg.com/video/evercore-s-roger-altman-on-global-m-a-eu…
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