M&A trends: Slowing economy spurs divestitures

March 7 - The Deal - In the last six to nine months, says Jeff Greene, economic conditions have led to an increase in divestitures. Greene, Americas leader for Sell-Side Advisory Services at Ernst & Young LLP, spoke with me about the recent activity in the marketplace.

The slow growth in the economy has many shareholders focusing on how to allocate capital, resulting in more carve-outs, spinoffs and divestitures, according to Greene. "There is still an expectation among company shareholders to grow organically from existing operations," he says. "More shareholders may be more inclined to divest now because of the cost of capital increasing, the cost of debt going up and equity concerns because of increased volatility." Read More (subscription required).