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Private equity firms predict sustained increase in M&A activity

4 March 2010

Private equity experts have said that the volume of mergers and acquisitions (M&A) is set to increase significantly this year as more companies begin to pursue growth.

Speaking at the Reuters private equity and hedge funds summit in New York this week, several figures claimed that the desire to boost revenues will lead to a significant upsurge in deal-making.

According to figure from Thomson Reuters, M&A activity in the US totalled $106 billion (£70.5 billion) in February - the highest monthly figure recorded since July 2008.

Fred Crawford, chief executive of financial advisory firm AlixPartners, said that the "sluggish economy" will force many companies to meet growth expectations by making acquisitions this year.

"You can get a one-time improvement by cost-cutting, but then once that's done you've got to stay disciplined and generally speaking, you need to grow," he told the summit.

A recent report from PricewaterhouseCoopers stated that M&A activity in the financial services sector will grow this year, having fallen to its lowest level for six years in 2009.

Categories: Private Equity


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