There's a nice post up on our sister blog Dealscape on the
keynote delivered by Barclays Capital's Paul Parker Tuesday at The Deal's M&A Outlook 2009 conference in New York. But there are a few additional points worth highlighting here as well.
Parker, who is chairman and head of global M&A for Barclays Capital, predicted $2 trillion to $2.5 trillion in deal activity in 2009. That compares to $2.7 trillion this year and $4.5 trillion in 2007. Of global M&A activity in 2008, cash was the consideration in 63% of deals. Stock transactions accounted for 28%, and 9% were cash-and-stock deals. That compares to 57% cash and 25% stock considerations in 2007. With continued volatility and challenging credit, Parker expects more movement toward stock considerations going forward.
The good news? Globalization isn't going away, said Parker, and new sources of demand in emerging markets will present "huge opportunities." Unprecedented valuation declines will spark opportunistic buying, and strategic acquirers will emerge from the crisis with stronger balance sheets and an appetite for deals.
- Suzanne Stevens
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