The first quarter has been a challenging one for M&A, but consolidation hasn't completely fizzed out in some industries and in others we should see even more in the upcoming months. Wednesday morning, I spoke with Bob Filek, partner of PricewaterhouseCoopers Transaction Services, about his outlook for M&A and private equity.
"Right now we need a little more debt," Filek joked. "Seriously though, for corporations with strong balance sheets, this is a great time to buy. For private equity players that are willing to do deals with creative structures, it is a good time to invest. And for international companies that want to expand into the U.S. market, it is a great time."
According to Filek, strategic buyers in some industries will face less competition for targets. These industries include technology, energy and minerals, and consumer products.
"Technology growth rates are slowing, and we have even seen a hostile transaction, which means that makes it ripe for consolidation. In energy and minerals, the commodity prices are very strong, and that puts a lot of cash in the companies' hands. Another one to watch for is consumer products. They are under a lot of stress, and because they are importing or outsourcing materials or goods, they are going to be under a lot of pressure, and that translates into strategic moves or take-out plays," Filek said. -
Maria Woehr
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