PwC: Transactions fell 7 times at the start of this year

The cumulated value of deals sealed since the beginning of this year slightly exceeds 100m dollars, while during the same period of last year the value of transactions amounted to 700m dollars, says PricewaterhouseCoopers audit and consulting services company. “On March 3, last year, Heineken bought Bere Mures, driving the cumulated value of deals to 700m dollars, and another two mega-deals were also announced. In terms of value, I don’t expect this year to be an outstanding one,” says Radu Stoicoviciu, a partner with PwC. The fact that the value of deals is 7 times lower this year can be viewed as an accident, but also as a trendsetter for 2009, one of the most difficult years for M&A consultancies, says Stoicoviciu. “Without risking being too wrong, I can say we’ll be fewer in this field at the end of this year”. The sectors that will still see deals done this year are the ones less harmed by the crisis, such as the food industry. On the other hand, Stoicoviciu says we are going to see forced sales of troubled companies, of the hardest hit sectors, such as the car and constructions industries. “However, there will be companies that, though willing to sell at a lower prices, will not find a buyer,” says the PwC partner. “There were deals that reached advanced stages of negotiation and were not signed. Others were signed, but they were delayed or even cancelled. Closing in case of a deal means transfer of property and transfer of money,” Stoicoviciu says.