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Merger market showed the slowest results since August since ‘92

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August 26, 2008 ·

By ProfitEdition News

Filed Under Stocks 

The merger market slowed with the fastest speed since year 1992 in this year August. Usually in August, Wall Street investment bankers escape to the Hampton that results traditional slow in the merger market, but according to data in this year U.S. deal size is on tempo to be the slowest August since 1992. Getting loan to finance the transaction over $5 billion has become difficult and private equity funds have been enforced to the sideline in stiff credit market because last year’s subprim credit fallout.

At the same time there is fluctuation in stock market currency and because of the fall of 13 percent in the Dow Jones industrials average this year negotiation regarding the deals got risky for corporations.

In this month deal volume sum up to $28.5 billion in US which showed 53 per cent below volume for all of August 2007 when the credit crisis began to clamp down on deal activity.

According to a merger advisor getting money to complete deals will remain difficult as long as financial institutions are having there own difficulties and private equity funds are in sideline as well as if strategist are unable to hold their stock steady to value deals.


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