Scott Vollmer, CEO at Drum Capital Management, said at the Buying Troubled Companies -- Turning Around Distressed Situations into the Golden Egg panel at The Deal's M&A Outlook 2009 conference Tuesday that the new government may be less interested in bailing out companies than the Bush administration.
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He said three years ago money was being thrown out to companies at low
rates, which caused the bubble and half the hedge funds exasperating the
bubble. "The problem is now you have to accept a failure," Vollmer said.
"To keep things open, to keep jobs is a noble approach ... but at some
point you have to let the market solve its problem."
The finance industry has gotten a bailout, and the auto industry is looking for help. Vollmer asked, "Who's next, retail?"
But moderator Anders J. Maxwell, managing director of Peter J. Solomon Co., capped the discussion by saying: "Tremendous fortunes were lost here, and tremendous fortunes will be made. ... Recovery will be dramatic at some point, and it will be sooner rather than later. ... Opportunity for picking winners will be huge." - Gerald Magpily
See all M&A Outlook 2009 posts
