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Weekly UpdatesMethodology
This Directors & Boards survey was conducted in June 2009 via the web, with an email invitation to participate. The invitation was emailed to the recipients of Directors & Boards' monthly e-Briefing. A total of 372 usable surveys were completed.
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If yes, what was the approximate aggregate deal value of these purchases/sales?
$221,526,565
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Are you seeing M&A opportunities emerging as a result of economic conditions? If so, what kinds of opportunities are presenting themselves?
Selected Comments
Yes, financial institutions are short of capital and need help.
Energy sector ... especially "solar". ... strategies that is aiming at sectors that do not rely on "subsidies" and rely less on Silicon.
Weakened companies that have no significant access to capital and who don't want to use their stock as currency due to the material dilution impact that would result The valuations are attractive for strategic acquisitions.
The stronger corporates from emerging markets will find an opportunity in acquiring corporates who have catered well to the economies now in trouble for acquiring competencies that can make them global organizations. They will gain in terms of valuation, quick pay back and value creation in their domestic turf which will help them build a faster growth in domestic market while bringing advantages of scale in the context of global market. A few large players may also go for backward integration by acquiring capabilities through cross border deals. PE funds may find new opportunities in these deals for hiking up a higher and more diversified return on their capital. Some of these deals may push boundaries of regulations and trade treaties in bilateral or multilateral contexts, calling for reforms and collaboration between market regulators across the globe. Weakness in the USD and Euro may also trigger capital flows chasing M&A opportunities transatlantic as well as transpacific.
Struggling companies are keeping options open, especially if they are uncertain about their ability to refinance existing debt.
Much smaller companies which in the past had waited for tlie most opportune moment to consider a sale have had to come into the market anyway in order to survive.
If you have the capital, you can pick up some very good companies at very reasonable prices.
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