Boards Play Safe as New M&A Cycle Begins
By Quentin Webb and Soyoung Kim
Reuters/Benjamin Beavan
A nascent recovery in global dealmaking, focused on safer deals with clear strategic logic, probably marks the start of several years of rising mergers and acquisitions, senior dealmakers said on Monday.
06 Apr 2011
While company earnings and balance sheets are strong, economic fragility, natural disaster, and political tumult in the Arab world are hurting corporate confidence and may hold back a more robust recovery in dealmaking, bankers said at the Reuters Global Mergers and Acquisitions Summit.
“Volatility is the nemesis of dealmaking,” Cary Kochman, joint global head of M&A at UBS AG (UBSN.VX), told the Reuters Summit in New York.
“While there is a little bit of steam built up in the M&A market and dialogues are increasing, we’re seeing a pretty good outbreak of transactions right now. There are risks and headwinds to that that we need to be aware of,” Kochman said. READ MORE
