Increased Merger Activity an Optimistic Sign for the Economy
October 11, 2012 § Leave a comment
Brodie Cobb, Chief Executive Officer of independent investment bank The Presidio Group recently told Biz Journals that merger activity is back on the rise after the initial economic drop in late 2008. Despite persistently high unemployment rates, some activity in the financial industry shows signs of improving and even surpassing expectations, Cobb said, particularly in the area of mergers and acquisitions.
“In the past 30 days, buyers and sellers are finally coming together on price,” Brodie Cobb told Biz Journals. Particularly among middle-market companies selling for less than $300 million, credit availability has become easier to deal with than finding a middle ground for buyers and sellers, both of whom hold different perspectives in trying to determine the appropriate price for an organization.
Recent merger and acquisition activity between nationally recognized companies such as Adobe Systems, which bought web analytics provider Omniture, or Kraft Foods, which took over candy manufacturer Cadbury, support Cobbâs perspective on optimistic changes in various corporate industries.
Similarly, Brodie Cobb told Investment News that financial service companies continue to look for ways to acquire or work alongside independent wealth management firms. The Presidio Group, for example, aims to buy or partner with companies located in New York, California, and Texas that have more than $500 million in assets.
”We think there are more and more of those types of firms out there who would be interested in joining us,” Cobb told Investment News.