Ultimate Supply Contingency Plan - Buy your Supplier
Wednesday, August 12, 2009 at 06:21PM With many companies facing significant financial difficulty, distressed M&A deals have soared.
Bank of America Merrill Lynch estimates that about $145 billion in debt could default this year, followed by about $130 billion next year and $120 billion the year after. Default rates are hovering around 10%, up from around 4% in 2008 and less than 1% in 2007, when credit was easy and the economy strong.
The potential exists to get a fantastic deal through a distressed M&A deal. The ultimate contingency plan to ensure supply, should you be hugely dependent upon your supplier, is to buy the business.
Here is the link to the full article (subscription required).
DaveM |
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