While spring may still be months away, the thoughts of corporate finance chiefs are already filled with visions of corporate matrimony. More than a quarter (27%) of CFOs surveyed recently by Robert Half Management Resources expect mergers and acquisitions to heat up in the next 12 months; at larger companies with 1,000-plus employees, 32.9% expect a surge.
Over the next two to three years, 48% of those surveyed expected to see a significant uptick. Robert Half conducted the survey of 1,400 CFOs of U.S. companies in August and again in late October 2006.
Not surprisingly, the primary drivers of this anticipated M&A activity are the record corporate cash coffers built up in the current business expansion cycle and an easy credit market, where interest rates have remained stubbornly low in the face of the Federal Reserve's efforts to raise them. The sectors where CFOs expect the most activity: transportation (44%), finance (42%) and manufacturing (38%).
However, CFOs polled were not bullish about the prospects for initial public offerings increasing, with only 8% predicting a surge.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
