Wednesday, August 29, 2007

CFOs see private-equity activity increasing: survey

Execs expect buyout binge to continue, but others say deals will be smaller

August 28 - MarketWatch.com - A survey released Tuesday of more than 100 chief financial officers found that 75% of them expect the number of companies seeking private equity to increase in the next 12 months.

But others aren't so sure. "I'd be very surprised if private-equity activity picked up at this point," said Jon White, president at Beacon Hill Financial in Orlando, Fla. "The credit crunch is making deals much more expensive. We're probably looking more at moving toward historic long-term averages where private equity deals number a lot less and involve substantially less money."

None of the CFOs expect private-equity activity to decline in the coming year, according to the survey conducted by Tatum LLC. Another 25% forecast some leveling off, according to the Atlanta-based strategic planning firm. Read More.

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