December 18 - Bloomberg News - Even Goldman Sachs Group, the world's leading takeover adviser since 2001, is preparing for a decline in income from mergers and acquisitions next year, when analysts predict a slowing economy will reduce the market for leveraged buyouts.
The value of transactions may fall 20 percent from a record $3.9 trillion this year, executives at JPMorgan Chase, Lehman Brothers and Bank of America estimate. According to analysts surveyed by Bloomberg, that may reduce fees on Wall Street and contribute to Goldman's first drop in profit since 2002, the last year of a decline in mergers and acquisitions.
Leveraged buyout firms, responsible for 5 of the 10 biggest purchases this year, now face financing costs that have more than doubled since June to the highest level in four years. The pace of takeovers fell 33 percent since the end of the second quarter as companies including Virgin Media and Cadbury Schweppes delayed asset sales amid signs that economic growth was ebbing in countries including the United States and Britain. Read More.
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