/24-7PressRelease/ - MUMBAI, INDIA, September 12, 2007 - Private equity firms' influence on the mergers and acquisitions market will dip as a result of the ongoing credit crunch, it has been predicted.
According to the Intralinks M&A survey, under a fifth of the 348 merger and acquisitions professionals questioned anticipate that private equity companies will be the driving force in the sector over the next 12 months.
The credit crunch is anticipated to hit private equity especially hard since they have especially benefited from cheap debt.
However, where cheap debt had previously also been seen as a crucial driver of deals, this is no longer deemed the case, with 31 per cent of respondents saying that this had been superseded by cash surpluses and strategic reasons.
The outlook for the sector in general is healthy, according to the survey, with some 88 per cent saying they thought the European mergers and acquisitions market would stay buoyant in the next year.
Large deals in which private equity has played a high-profile role recently include the takeover of Alliance Boots by Kohlberg Kravis Roberts and Blackstone Group's acquisition of Hilton Hotels.
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