June 14, 2010
Heading into the year, forecasts from all the major law firms, accounting firms and bank economists seemed to agree on one thing: 2010 would be the year that M&A activity, which cratered in late 2008 and 2009, makes a big comeback.
If the first part of 2010 is any indication, the rally is in progress. But the second half will show full results.
"My sense is there's quite a bit of stuff building up in the pipeline," says Matthew Cockburn. "We're certainly seeing a lot more activity among the people we work with, the private equity funds and pension funds, in terms of looking at things. And the discussions they're having with potential targets are getting a lot more traction than they did a year ago."
Matt says a resurgent economy has a lot to do with the pace of strategic M&A. "A year ago it was really difficult to predict how your company or the target company was going to perform over the next 12 months," he says. "Now there’s a lot more comfort that as the economy improves. Your ability to see forward is much better. I think that probably makes strategic buyers in particular more confident in their ability to properly price a deal."
Read the full article on the Listed Magazine website.