Pandemic-Era M&A booms slow down

Global dealmaking suffered a record fall during the second half of this year, as rising interest rates and economic uncertainty brought a period of frenzied activity to an abrupt close.

Mergers and acquisitions worth $1.4tn were announced during the six months to December, according to data provider Refinitiv, down from the $2.2tn agreed in the first half of 2022. It was the biggest swing, from one six-month period to the next, since records began in 1980.

The overall volume of deals struck globally in 2022 was down 38 per cent from 2021, the largest year-on-year drop since 2001. Still, it was at high levels by historical standards, above the global totals seen in 2016 and 2017.

The slowdown was the result of sharp interest rate rises, in the wake of rising inflation and the war in Ukraine, hitting confidence in global markets and increasing the cost of financing. Junk bond markets all but froze up, complicating private equity firms’ ability to fund deals.

Private equity-backed buyouts slowed but many firms have raised large funds that are yet to be fully deployed. Some are making smaller acquisitions and hoping that larger buyouts will become easier next year if debt markets open up.

Private equity groups are also taking longer to deploy their funds, according to Christian Sinding, chief executive of EQT. “The typical cycle has been three years, recently it’s been closer to two years because it shrinks in very hot times, but it could now extend beyond three years again”, he said.

Alison Harding-Jones, head of M&A for Europe, the Middle East and Africa at Citigroup, expected dealmaking in 2023 to be “driven primarily by corporate activity” as companies with healthy balance sheets sought to expand.

“People are very busy. High quality strategic transactions, I think that’s going to be the definition of the first and second quarter next year,” she said.

Some advisers said 2023 might also be a year of two halves, as corporate leaders started to accept bids at lower valuations.

“At some point during the year . . . we’ll start building up again,” said Eric Swedenburg, a partner at the law firm Simpson Thacher. “It won’t be right out of the gate in January. I don’t think we’re out of the woods yet”.

Gecelik Faiz, Politika Faizi, Geç Likidite Penceresi, Repo Nedir?

2020 yılında TCMB farklı araçlar üreterek dolaylı yollar ile piyasayı fonladı ve hatta fiyat istikrarı görevini bir kenara bırakıp, TL’nin sert değer kaybı sebebiyle döviz kurlarına dolaylı yoldan müdahil oldu. Bu süreçte oldukça fazla haber ve malumat(information) yayınladı. Fakat kimileri için tam olarak akla yatmayan, anlaşılamayan veya farkının anlaşılmadığı kavramlar duyulmaya başlandı; Overnight Faiz, geç likidite penceresi, gecelik faiz, repo, gösterge faiz vs… Bu alanda Türkçe kaynak az olmakla birlikte kafa karışıklığı da çok yaygın. Bu yazımda bunlara açıklık getirmeye çalışacağım.

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Fundamentals of Capital Budgeting and Financial Modelling

I’m intented to explain fundemantal structure of Capital Budgeting herewith. Financial Modelling step is the natural inevitable outcome after the budgeting process. You may find more detailed explanations later in the article.

Capital Budgeting

Capital budgeting is the process that companies use for decision making on Capital Projects those projects with a life of a year or more. It is accepted that, real capital investements of a company describe the company better than its working capital or capital structure. Valuation principles used in capital budgeting are similar to the valuation principles used in security analysis and portfolio management.

Outlines of Capital Budgeting Process

  • First of all investment ideas need to be generated. These ideas could be bring through top to bottom or bottom to top. Idea generation process is quite important step but most of the books or experts overlooking it.
  • Generally these ideas need to be compitable with the company’s overall strategy or expertise. And it also must consider the projects’ timing. Some projects may look good when considered in isolation but maybe undesirable strategically. Because of financial and real soruce issues, the scheduling and prioritizing of projects is important.
  • In post-auditing process, actual results are compared to planned results any differences must be explained.

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Yedi Yılın Yatırım Analizi (2010-2017)

Bu analiz Türkiye’de, 2010 yılında bir yatırımın 2017’deki değerini görmek adına hazırlanmıştır. Eğitim ve tecrübemle, daha karmaşık teoriler kullanarak analiz edip açıklamak mümkün olsa da; bu basit bakış açısının da kıymetli olduğunu görüşündeyim. Zira sistematik risklerin ülkemizde OECD ülkelerine nispeten fazla olması, bu yaklaşımın kıymetini arttırmaktadır. Elbette ki portföy hazırlarken çeşitli çarpanlar, değişkenler ve parametreler dikkate alınarak yatırım yapılması gerektiğini belirtmek gerek. Ve elbette ki bu analiz bir yatırım tavsiyesi niteliğinde değildir. Finans bilgisi ortalama olan bireylerin dijital ortamda (telefonunda uygulama üzerinden vs) kolayca yapabileceği yatırımların ne gibi şekil aldığını anlatmaya çalışır. Yani genel tabloyu basit şekilde görmek için yapılmıştır.

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New-Model Development Finance

China’s success in establishing the Asian Infrastructure Investment Bank(AIIB) has been widely regarded as a diplomatic fiasco for the United States. After discouraging all US allies from joining the AIIB, President Barack Obama’s administration watched as Great Britain led a raft of Western European countries, followed by Australia and South Korea, into doing just that.

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The 25 Most Difficult Questions You’ll Be Asked on a Job Interview

Being prepared is half the battle.

If you are one of those executive types unhappy at your present post and embarking on a New Year’s resolution to find a new one, here’s a helping hand. The job interview is considered to be the most critical aspect of every expedition that brings you face-to- face with the future boss. One must prepare for it with the same tenacity and quickness as one does for a fencing tournament or a chess match.

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Liberal Multiculturalism Masks An Old Barbarism With A Human Face

SJ-2Zizek is the most influential, intriguing and famed philosopher in our time. He has an heterodox, contrarian, idiosyncratic approach to every single subject. About multiculturalism, he points the reverse angle, inner truth…

Across Europe, the politics of the far right is infecting us all with the need for a ‘reasonable’ anti-immigration policy

The recent expulsion of Roma, or Gypsies, from France drew protests from all around Europe – from the liberal media but also from top politicians, and not only from those on the left. But the expulsions went ahead, and they are just the tip of a much larger iceberg of European politics.

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