M&A deals on ice amid financial crisis
Companies are putting merger and acquisition deals on ice amid worst financial crisis in decades
Confidence in the mergers and acqusisions market has been seriously dented
following the collapse of Lehman Brothers and the widening market turmoil as
companies worldwide, struggling to value acquisitions, are putting deals on ice.
Henrik Aslaksen,
Deutsche Bank
co-head of global M&A, told the Financial Times that although the
pipeline of deals had not shrunk, the current market volatility made it harder
to execute deals.
‘Financing is also more challenging. However, this is not stopping some
companies from approaching target boards with lower offers when the deal’s logic
is still sound,’ he said.
Gavin MacDonald,
Morgan
Stanley global head of M&A, said: ‘Companies are putting many deals on
hold at the moment because share prices are so volatile that they cannot decide
the market clearing price.’
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