Filed under: Deals, Private equity, Anheuser-Busch Cos (BUD)
For financial markets, August is always a slow time as Wall Streeters head for their vacations. But this year, there was more than just seasonality. Simply put, it was a very tough month for M&A operators.
In fact, according to Reuters, August was the worst month since 1992.
It’s been about a year since the credit crunch started, and it looks like things aren’t getting superior. If anything, it’s a good bet we’ll continue to see volatility and layoffs in the financial services space.
In August, the M&A volume in the U.S. came to about $28.5 billion, which is 53% off from the same period a year ago.
Ironically, while private equity funds have a massive amount of capital to put to work, there’s not much bank financing. As a result, most of the private equity deals have been fairly small (below $2 billion or so).
Also, some of the current mega deals - such as InBev’s $45 billion acquisition for Anheuser-Busch Cos. (NASDAQ: BUD) - are crowding out the financing market.
In other words, investment bankers may need to wait until next year for things to warm up again.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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