More mergers mooted for 2011
Page 11
If you've noticed an error in this article please click here to report it so we can fix it.
IT IS PREDICTED that transport and logistics companies will revert to more strategic mergers and acquisitions (M&As) during 2011 after the recession forced many to strip out internal costs instead, according to accountancy company KPMG.
Although its analysis concentrated on global activity by companies in the sector, KPMG partner James Stamp believes UK irms will follow a similar trend.
The analysis shows M&A activity reduced signiicantly during the recent inancial crisis and any M&A activity that did take place was characterised by more proitable transport businesses being purchased.
“It doesn’t mean businesses were better, it means the ones that were bought were better,” says Stamp. “Companies emerged from a pretty horrible period between 2007 to 2010 leaner, stronger and with external conidence. Many companies will be switching their focus externally again. This is helped by the fact that the outlook for inancing opportunities started to brighten during 2010 and into early 2011.” However, he warns that rising oil price rises could again disrupt M&A strategies.