Ernst & Young has issued a report on mergers and acquisitions that shows 2008 deal volume slowed to 2003 levels, valuations fell, and cash rich corporations are shopping cautiously. The report notes even corporations with cash on hand and strong balance sheets -- which previously faced competition from PE firms -- are now confronted with new players arriving on the scene: sovereign wealth funds and other foreign buyers looking to acquire undervalued and distressed U.S. assets.
E&Y makes note that in 2009 that those without a certain level of liquidity will need to figure out a way to re-engineer their capital position to survive the current cycle.
The report also contains numbers on private equity, emerging markets and a breakdown for M&A in the financial services, pharmaceutical, oil and gas, media and entertainment, technology, and auto sectors.
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