With financial markets in turmoil, the M&A market may appear
to be in dire straits. From Lehmans to Merrills, the Masters of the
Universe are no longer flying so high, but what does this mean for
mere mortals?
Private equity houses continue to create significant activity.
While they may steer clear of certain sectors, resilient companies
with strong cash flow or long-term contracts remain attractive.
With private equity no longer outbidding trade, corporates have
once again become the primary acquirer and we expect to see more
strategic purchases. 2008 has seen an international trend in
mid-market transactions, reflecting a weak pound and the flow of
money into the UK from the developing world and Middle East. The
result is more acquisition activity.
