M&A- Bringing Buyers and Sellers Together

摘要

Following the Great Recession, interest rates have remained at or near historical lows while private investors and publicly traded multinationals have amassed unprecedented levels of investable cash. The private owners of these Strillions need to deploy their reserves into higher risk, alternative investments such as Private Equity to meet their yield requirements. Similarly, cash-rich publicly held corporations are under pressure to deliver acceptable levels of return on capital in the face of an uneven global economy where GDP growth rates struggle to sustain 3% in the best economies. Yes, China's GDP is reportedly in the 6% to 7% range, but the trajectory is downward and many of its basic industries are plagued with overcapacity. So, with organic growth increasingly difficult to attain, many publicly traded corporations are looking at stock buy-back programs and/or acquisitions to drive higher shareholder returns.