ID :
181042
Tue, 05/10/2011 - 07:53
Auther :
Shortlink :
https://oananews.org//node/181042
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CORPORATE CONFIDENCE IS ROBUST IN SOUTHEAST ASIA, SAYS ERNST & YOUNG
KUALA LUMPUR, May 10 (Bernama)-- The Ernst & Young biannual Southeast Asia (SEA) Capital confidence barometer study has revealed that corporate confidence is robust in the region.
In a statement Tuesday, it said capital conditions of SEA companies have maintained or improved over the last six month, with little perceived barriers to secure funding.
"Yet, many prefer to focus on organic growth while indicating merger and acquisitions as their top activity in the next six months," Ernst & Young said.
The study had 47 per cent of SEA respondents confirming that they were either undertaking or seriously considering an acquisition in an emerging market.
"Another 26 per cent confirmed the same level of undertaking for an
acquisition of either a distressed or non-distressed asset.
"The continued interest in acquisition was also demonstrated by a majority of SEA respondents wanting to do deals in the next two years," it said.
However, hurdles to deal-making continue to exist. The number one
deal-breaker now is the valuation gap between buyer and seller expectations, according to 53 per cent of the SEA respondents who cited this as an obstacle of increasing significance.
They also said, other challenges to execute the merger and acquisitions were heightened board and audit committee scrutiny, as well as competition for assets.
In a statement Tuesday, it said capital conditions of SEA companies have maintained or improved over the last six month, with little perceived barriers to secure funding.
"Yet, many prefer to focus on organic growth while indicating merger and acquisitions as their top activity in the next six months," Ernst & Young said.
The study had 47 per cent of SEA respondents confirming that they were either undertaking or seriously considering an acquisition in an emerging market.
"Another 26 per cent confirmed the same level of undertaking for an
acquisition of either a distressed or non-distressed asset.
"The continued interest in acquisition was also demonstrated by a majority of SEA respondents wanting to do deals in the next two years," it said.
However, hurdles to deal-making continue to exist. The number one
deal-breaker now is the valuation gap between buyer and seller expectations, according to 53 per cent of the SEA respondents who cited this as an obstacle of increasing significance.
They also said, other challenges to execute the merger and acquisitions were heightened board and audit committee scrutiny, as well as competition for assets.
