Strategic Acquirers to Stay Risk Averse in 2013

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Deputy Editor Vincent Ryan interviewed Marc McMorris about the kinds of companies Carrick is targeting and other trends in private equity. “The thirst for M&A among corporate executives declined in the latter half of 2012, according to E&Y’s Capital Confidence Barometer survey. As of October, only 23% of U.S. executives said their company would execute an acquisition next year, down from 34% six months earlier.  But McMorris says there are more-forward thinking, aggressive companies that will use the economic activity and deal-making lull to gain market share. Companies that are the number two, three, or four provider in their market may be thinking this state of suspended decision-making is exactly the pause they needed to jump ahead of the competition, says McMorris.

‘We’re seeing lots of conversations around acquisitions where companies are saying it’s exactly the right time to bulk up, expand geographically, or add a new product or service,’ he says.  McMorris’s Carrick Capital recently closed its inaugural fund, and like many private-equity firms is poised to invest. Indeed, E&Y says the 2013 outlook for private-equity-sector deals is much more positive, largely because of strong fund-raising by firms and their confidence in credit availability.”

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