M&A going strong
Deloitte Belgian CFO Survey Q3-2010
Expectations on private equity activity marked a significant increase in the third quarter. M&A activity expectations remain stable, but high. Private equity has been growing over the last two quarters and is now at the same level as the M&A activities. The Belgium view is not divergent from the other countries.
More than half of the CFOs expect their organization to be engaged in corporate activity in the next 12 months. Expansion and growth are high on the agenda of the surveyed CFOs. From this group, 72% considers an acquisition or merger, followed by 17% who expect to be part of a strategic alliance.
Companies, who consider a transaction(s), are likely to use existing debt facilities, new bank loans or cash. New equity is out of favour. Although M&A expectations have been bullish for the past 18 months, activity remained weak. Cheap financing and strong cash positions might finally boost transactions.