As the recession period draws to a close, some analysts are wondering if it will spell the start of a particularly busy period for mergers and acquisitions.
Following a time when firms were tightening their purse strings, those companies that have managed to successfully strengthen their balance sheets may now be looking to find a bargain.
Bankers claim that M&A is an attractive route to take in the post-recession period as previously unattainable firms could now be well within the reach of those who want to buy them.
Indeed, many businesses are set to sell off assets in a bid to reduce leverage, meaning there could be an influx of businesses for sale, particularly within the financial services sector. This rush to sell assets is being partly prompted by financial institutions finding themselves in debt to the Government after the round of recession bailouts.
Although some experts urge caution in purchasing distressed business, as creating successful recovery is a challenge for buyers, these types of acquisitions can offer some of the best value deals around and are plentiful following a recession.
Smaller firms are also set for a busy year in terms of M&A, as a result of the gap between the expected value of assets and the achievable sale price narrowing.
Thierry D'Argent from Societe Generale said, "companies may not be willing to sell at today's valuations, but there is a premium to repairing balance sheets, having a strong credit rating or indeed restoring the ability to seize opportunities."
Another factor that may boost the number of mergers and acquisitions is the re-emergence of the availability of bank debt. As a result, private equity firms are expected to begin to take a more active part in helping firms to restructure.
Business owners were putting off the sale of their assets during the downturn, as they were simply not worth enough. However, as the market stabilises, values are up once more but, crucially, there are bargains still to be had for eager buyers with money to spend.
The opportunity to acquire the business and/or assets of a specialist B2B marketing agency based in the North of England. A leading provider of a comprehensive range of marketing solutions to innovative technology led engineering and manufacturing bu...
An opportunity exists to purchase the business and assets of a retail and wholesale distribution of drylining & plastering tools via website/ phone / mail order, and the sale of tools and hardware on the high street.
An opportunity exists to purchase the business and assets of a medical logistics business operating from the North of England. The company provides medical logistics and transport support to a range of public and private organisations. They offer sam...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.