Deal volume rises, multiples fall, morsels abound
June 16 - Financial Week - Dealmakers say this is the best corporate mergers and acquisitions market they've seen in years, now that the buyout boom is over and deal prices are starting to inch down.
“It is the year of the re-emergence of the strategic buyer,” said Howard Lanser, director at investment bank Robert W. Baird. “When the economy slows, the strong companies with strong balance sheets are at an advantage in terms of being able to pursue strategic acquisitions.”
Corporate buyers have been especially busy chasing companies worth less than $1 billion, which this year have fetched, on average, multiples of 11.1 times trailing earnings before interest, taxes, depreciation and amortization, according to data from Robert W. Baird. That is down from 11.4 times EBITDA such companies were selling for in 2007. A seemingly slight decline, but significant because it indicates prices are starting to dip after rising in 2006 and 2007. Read More.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment