M&A to flourish, Asia continues to be the leading source
According to a new study by the Brunswick Group conducted at the Tulane Corporate Law Institute in New Orleans, feels that their confidence is increasing, much of which was driven by a strong first quarter for deal-making, capped last week by AT&T's blockbuster $39 billion deal for T-Mobile USA. There has been an increase of around 58 percent in M&A volume for the quarter from the period a year earlier, which is the best since 2007.
Greater confidence among management teams and company boards was noted to be the biggest contributor to rising M&A by half of the deal makers while other factors include improving economy, more buying in the form of cash on corporate balance sheets and the availability of cheap credit were ranked as some of the top reasons.
Majority of the deals are domestic ones so far by the strategic buyers and Asia continues to remain as the leading source of international buyers of American assets.
Nearly 40 percent of the respondents feel that regulatory hurdles are the biggest obstacle to deals. However, 57 percent expects more deals to happen using just cash.
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