May 11, 2012

Doug Wright Tells Denver Business Journal of Improving Outlook for M&A Activity

With ample capital hoarded during the recession, many companies now are poised to re-enter the mergers and acquisitions market, Doug Wright told the audience at the May 9 CFO forum sponsored by Denver Business Journal

"Companies that survived the downturn are leaner and more agile, and in the very good position to do M&A transactions now," Wright said, noting that the acquisition activity, having picked up in 2011, is expected to gain momentum throughout 2012.

For the time being, strategic buyers, who rely on a combination of cash and stock, have an advantage over private-equity firms, which had less access to capital during the recession.

"Strategic buyers have cash available, they have stock available, and they're usually looking to make synergistic acquisitions," Wright said.

Nothing matters more in achieving synergies than good rapport and shared values between the parties contemplating a deal. To illustrate the point, Wright brought up the combination between Baker & Daniels and Faegre & Benson as an example of a merger based on compatibility. "The glue that bound the deal together was the culture, values and personality of the two firms," he said.

The full article is available to subscribers only.

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