PwC: 2009 M&A to be fueled by 'merger of necessity'

- Baz Hiralal, The Deal.com, December 31, 2009:
Robert Filek, a partner in PricewaterhouseCoopers' transaction services group -- and a former CD Forum moderator -- said "troubled companies will look to align with larger, stronger players in order to survive, creating the perfect storm for mergers of necessity," PwC said in a lengthy report that the deal landscape will be dominated by distressed investments across sectors including financial services, automotive, consumer products and retail.
The report analyzes major sectors including energy and healthcare, among others. It notes the new administration's goals include expanding access to quality and affordable health insurance, modernizing healthcare, reducing costs, and promoting public health, prevention and wellness. "This will create an uptick in 2009."
PwC also notes a "wild card," posing this question: Could public company valuations get so low that the public-to-private transaction could re-emerge? We'll see what the new year brings -- hopefully some looser credit markets.

Go to the PwC 2009 M&A report