Making acquisitions now ‘could result in good returns’

Posted 23/12/2010

Companies considering making acquisitions may wish to do so now in order to get the best returns.

This is according to investment bank expert Darrell Butler, who told Inc magazine that now is a “great” time for buyers.

“There are potentially going to be huge bargains out there and great appreciation possibilities,” he commented.

Mr Butler explained that buyers who take over companies when prices and earnings are low could get good returns once the economy picks up.

However, he urged companies making acquisitions to ensure they have a strategy that includes planning, making a timetable, catering for integration problems and considering the products.

Earlier this month, UBS said it believes mergers and acquisitions activity could increase significantly next year following a lull.

Spokesperson Dan Stillit said deals activity could jump by between 30 and 50 per cent, with one in six firms in Europe expecting to make a large-scale acquisition in 2011.