(Full story)
By Lionel Laurent
CANNES, Dec 9 (Reuters) - A return to growth for the eurozone economy in mid-2013 and a likely waning of pessimism over the U.S fiscal cliff will bring a rebound in corporate deal-making, the head of French private-equity firm PAI Partners told Reuters.
Although PAI has recently struck several deals in the 500 million euros ($646.40 million) price bracket, Lionel Zinsou said in an interview on Sunday that the broader mergers and acquisitions market would recover only after a widespread return of confidence next year.
"The turning point for the European economy will be mid-2013...Bankers are making preparations for the end of the eurozone recession but the deals aren't there yet," Zinsou, a former Rothschild banker who has led PAI since 2009, said on the sidelines of a conference in Cannes.
Global M&A volumes have slumped so far this year, with big-ticket deals especially thin on the ground due to concerns about the eurozone debt crisis and a lack of agreement over the pending U.S. "fiscal cliff" - steep tax hikes and spending cuts set to kick in early next year.
Pointing to the current market pessimism as a good time to buy assets on the cheap, Zinsou added: "Once the worries over the U.S. fiscal cliff and other markets start to fade there will be a window of opportunity for sellers, I think, in the second quarter of 2013."
By Lionel Laurent
CANNES, Dec 9 (Reuters) - A return to growth for the eurozone economy in mid-2013 and a likely waning of pessimism over the U.S fiscal cliff will bring a rebound in corporate deal-making, the head of French private-equity firm PAI Partners told Reuters.
Although PAI has recently struck several deals in the 500 million euros ($646.40 million) price bracket, Lionel Zinsou said in an interview on Sunday that the broader mergers and acquisitions market would recover only after a widespread return of confidence next year.
"The turning point for the European economy will be mid-2013...Bankers are making preparations for the end of the eurozone recession but the deals aren't there yet," Zinsou, a former Rothschild banker who has led PAI since 2009, said on the sidelines of a conference in Cannes.
Global M&A volumes have slumped so far this year, with big-ticket deals especially thin on the ground due to concerns about the eurozone debt crisis and a lack of agreement over the pending U.S. "fiscal cliff" - steep tax hikes and spending cuts set to kick in early next year.
Pointing to the current market pessimism as a good time to buy assets on the cheap, Zinsou added: "Once the worries over the U.S. fiscal cliff and other markets start to fade there will be a window of opportunity for sellers, I think, in the second quarter of 2013."
No comments:
Post a Comment