- How To Integrate Continuous Improvement Into Your Organization’s Culture And Daily Activities
- Identify The Strengths Of Your Services And Where Improvements Can Be Leveraged
- How To Succeed In A Continually Changing And Unstructured Workplace
- 6 tips to get back in touch with an old colleague
- Paving the Last Mile of Big Data Analytics
- Important Considerations For An Organizational Restructuring
- Elevator Speech 2.0 = Elevator Dialogue
- 4 ways to qualify a lead
- Is the Trusted Advisor Still Trusted?
- 5 things you must do to win your first client.
Ernst & Young: Earnings season set to test confidence
February 7, 2013
By Rob Starr, Content Manager, Big4.com
The Ernst & Young Oceania Transactions Advisory Leader, Graeme Browning, says the next month of earnings reporting will be a key test of renewed market confidence and largely determine the level of deal activity for 2013.
Ernst & Young’s recent Global corporate divestment study , suggests more corporates are preparing to sell, with 36% of Australasian respondents saying they intend to do a sale in the next 12 months, and 51% in the next two years.
“That is a significant change in sentiment. So while we’re just starting to see companies prepare to sell, I think we will see a lot more activity as an improving outlook flows through to confidence to invest and transact,” says Browning.
The survey also found:
- 88% of Australasian respondents intend to accelerate their divestment strategy over the next two years.
- 50% of planned divestments by Australasian respondents expect deal size to be more than US$250 million, while 33% expect a deal size of US$50-$250m and 17% US$50m or less.
- 61% of Australasian respondents said when divesting assets in the past they had left it too late and with hindsight wished they had completed the sale earlier.
Ernst & Young’s divestment study found the top three reasons for Australasian companies selling an asset were: ability to secure an attractive price in the current market; need to release cash into the business, and; to focus on core business.