[This may signal more layoff from corporations]--"Mergers and acquisitions seen posting gains in '05"
Mon Jan 17, 2005 07:59 PM ET
NEW YORK, Jan 17 (Reuters) - Mergers and acquisitions, already coming off an active year in 2004, are likely to post stronger gains this year, a survey of 1,800 bankers, lawyers, corporate executives and others released on Monday found.
"Deals are back in a big way," said Peter Coffey, president of the Association for Corporate Growth, an 8,500-member industry trade group that conducted the survey with Thomson Financial. "Not only did deals return in 2004, but those closest to them anticipate this will continue unabated in 2005.
Fueled by strong gains in the fourth quarter, U.S. deal volume in 2004 surged 46 percent to $834 billion from the year before, according to Thomson Financial. And 2005 could be more active, helped by M&A activity in technology, manufacturing and distribution and healthcare, the survey found.
The ACG/Thomson dealmakers survey, which polled investment bankers, private equity executives, lawyers, corporate executives and others, found that the percentage of respondents who feel the M&A environment is good or excellent leaped to 72 percent from 45 percent in last year's survey.
Investment bankers are the most bullish, with 79 percent saying the M&A environment is good or excellent, followed by private equity executives (75 percent), lenders (72 percent) and entrepreneurs (67 percent).
In addition, 87 percent of the respondents said they think the M&A environment will improve in 2005, up from 85 percent last year.
© Reuters 2005. All Rights Reserved.
reuters.com |
