According to Moneynews.com the market for mergers and acquisitions will likely slow substantially if people are reluctant to move forward with deals if they are ensure about share values. Even though Fed officials said that the benchmark interest rate will remain low even if bond-buying decreases, some analysts have become skittish.
According to data compiled by Bloomberg, the pace of new deals is slowing, with companies announcing $988 billion of takeovers in the current quarter, down from $1.03 trillion a year earlier. Morgan Stanley CFO Ruth Porat, told analysts on a conference call, according to Moneynews.com that its fees from advice were essentially flat. The New York-based firm’s first-half revenue from advising clients, which includes fees generated by deals announced previously, climbed 1.4 percent from a year earlier.
CEOs are waiting to see if share prices are about to shift and are struggling to come to terms with what Doug Sipkin, an analyst at Susquehanna Financial Group LLLP, believes, “what the real prices for stuff are.” The problem is that few people agree with what represents stable valuations, Alexander Roos, who leads Boston Consulting Group’s global M&A practice from Berlin, told Moneynews.
Not everyone is hesitating. Publicis Group SA and Omnicom Group Inc. have agreed to merge in an all-stock transaction that will create the world’s largest advertising company. And Perrigo Co. agreed to buy Irish drug company Elan Corp. for $8.6 billion.
“People generally don’t engage in M&A unless they have some confidence in their assumptions about the future,” Lazard CEO Kenneth M. Jacobs, said in an interview by Moneynews. “That generally happens when you can see the macroeconomic environment either improving or stable. And that hasn’t been the case for the past six years or so, really since before the crisis.”
According to the Commerce Department the economy is slowing down, growing barely by an annual rate of 2 percent. Mark Shafir, Citigroup’s global heqad of M&A said he’s starting to wonder if the pace of M&A will ever return to the levels seen in 2006 and 2007. “It looks to us like we may be actually in a decelerating market as opposed to an accelerating market. ” Shafir said on CNBC.
Read: <href=”#ixzz2ajy6vQMb”>https://www.moneynews.com/Economy/wall-street-mergers-chief-executives-federal-reserve/2013/07/29/id/517468#ixzz2ajy6vQMb
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
0
1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.