Financial crisis: Effect on the M&A market and controls transactions

A substantial drop has been witnessed in the financial market and the U.S. unemployment figure is at its highest level in 14 years, thereby affecting to worldwide recession. The sellers and buyers of companies must understand that transactions are likely to be more difficult and time consuming. The positive news is that fundamentally sound, growing business are more likely to stand in today's M&A market, and gather strong interest from both private equity and strategic buyers. M&A has the availability of leverage, as the current credit markets are straining the ability for all parties, private equity groups to get adequate financing for acquisition opportunities. The industry's largest strategic buyers are still very active, and private equity firms are becoming more creative with transactional structures having plenty of capital for work.