Distressed assets present an opportunity in European M&A sector
30 June 2009
The European M&A market has fallen back significantly from its peak in 2007 with private equity deals falling by 59% in 2008 as the trouble in debt markets curtailed many leveraged deals. Corporates with strong balance sheets and cash-rich private equity firms can take advantage of companies disposing of non-core subsidiaries, according to Ted Webb, Joint Managing Director at IBI Corporate Finance.
"We will see profitable, non-core subsidiary disposals over the coming months as corporates have begun to accept that peak sales values will not return anytime soon and they themselves choose to focus on core operations. There will also be opportunities for financial advisers to work with companies needing to alter their capital structures - whether requiring new external finance or a restructuring involving existing shareholders."