Corporate Dealmakers are on the Prowl
There is still an appetite among dealmakers to make strategic mergers and acquisitions, reports BusinessWeek.
According to the publication, corporations continue to look for beneficial purchases or deals to be struck with competitors and partners.
However, while this could drive business levels higher in the mergers and acquisitions market, the article adds that a full recovery may still take longer.
The transactions which do take place are more likely to be carried out without the need for external funding, according to article author Ben Steverman.
He explains that cash purchases or deals which involve the movement of stock are able to evade the need for third-party funding.
Such financing methods could prove particularly popular as fewer firms have access to business loans from major lenders.
This "credit issue" is singled out as a reason why major, high-value mergers and acquisitions are unlikely to re-emerge immediately.
And only companies with exceptional credit ratings are expected to find they have access to large amounts of external financing.
BusinessWeek suggests that the current market conditions mean that chief executive officers who are prepared to "put their nerves aside" could find they are able to buy out a rival operator for a relatively low price.
