Dec 14, 2008
2009 May Be Year of the Deal for Those With Cash – Mergers, Acquisitions, Venture Capital, Hedge Funds — DealBook – New York Times
Trouble is, cash-rich companies are in the minority, according to a recent Ernst & Young survey of almost 500 businesses. Only 44 percent of companies are currently performing at what they would characterize as “successful levels,” the survey found.
Fifty percent of those surveyed characterized their current operating levels as “stressed” or “distressed,” Ernst & Young said. These companies will be divesting business units that are not aligned with core competencies and competitive advantages, it said.
Companies with cash are expected to come in and buy up those distressed assets at bargain-basement prices.
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