CFOs WEIGH IN ON MERGERS AND ACQUISITIONS

Financial Executives Expect Moderate M&A Activity in Next 12 Months

MENLO PARK, CA -- Corporate marriages may be on the rise through the end of the decade, a new survey suggests.  Twenty-seven percent of chief financial officers (CFOs) polled recently said they expect the number of corporate mergers and acquisitions (M&As) overall to increase in the next 12 months.  In a follow-up survey, 48 percent of CFOs polled said they anticipate greater M&A activity in the next two to three years.

The surveys were developed by Robert Half Management Resources, the world’s premier provider of senior-level accounting and finance professionals on a project and interim basis.  Each was conducted by an independent research firm and includes responses from 1,400 CFOs from a stratified random sample of U.S. companies with 20 or more employees.  

CFOs were asked, “Do you think corporate merger and acquisition activity will increase, decrease or stay the same over the next 12 months?”  Their responses:

Increase significantly       5%
Increase somewhat   22%
No change   65%
Decrease somewhat   1%
Decrease significantly   1%
Don't know/no answer     6%
    100%

In a related survey, CFOs were asked, “Thinking about your industry, in the next two to three years, do you expect the amount of activity in the following to increase, decrease or stay the same?”  Their responses: 

     

Increase

 

Decrease

 

Stay the same

 

Does not apply

 

Don't know/no answer

Mergers    

28%

 

2%

 

55%

 

14%

 

1%

Acquisitions    

20%

 

2%

 

60%

 

16%

 

2%

Consolidations    

13%

 

2%

 

66%

 

18%

 

1%

Initial public offerings    

8%

 

3%

 

57%

 

30%

 

2%

Publicly traded companies going private  

 

8%

 

4%

 

53%

 

33%

 

2%

Leveraged buyouts    

7%

 

2%

 

54%

 

33%

 

4%

Among industries, the greatest amount of merger activity is expected to take place in the transportation and finance sectors in the next two to three years, according to executives polled.  Forty-four percent and 42 percent of CFOs, respectively, in these industries said they expect merger activity to increase within the next few years.

“Relatively low interest rates and deep cash reserves within many companies are prompting firms to make strategic acquisitions,” said Paul McDonald, executive director of Robert Half Management Resources.  “The complex nature of the merger and acquisition process is driving the need for financial executives knowledgeable in this area.  Companies continue to rely on senior financial analysts with specialized M&A experience to support them in conducting due diligence, analyzing financial data, developing competitive forecasts and assisting with tax compliance issues.”

Robert Half Management Resources has more than 125 offices throughout North America, Europe, Asia and Australia, and offers online job search services at www.roberthalfmr.com.

Industry Breakdown

 

Mergers

Acquisitions

Consolidations

Initial Public Offerings

Publicly Traded Companies Going Private

Leveraged Buyouts

 

Media Contacts

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