CFOs Forecast Moderate M & A Activity In 2007

But more M&A activity envisioned through end of decade, according to Robert Half Management Resources survey.

Corporate mergers and acquisitions will increase moderately through the end of 2007, with more M&A activity expected between 2008 and 2010, according to a survey of 1,400 CFOs released Friday by Robert Half Management Resources, an accounting and finance staffing agency.
 
Over the next 12 months, 27 percent of the CFOs surveyed said they expect corporate M&A to increase, while 65 percent answered "No Change." In a related survey, 48 percent of the CFOs project more M&A activity during the next two to three years.

Most of the merger activity is expected to take place in the transportation and finance sectors over the next two to three years, according to the executives polled.

In the transportation industry, 44 percent of CFOs and in the finance sector, 42 percent of CFOs, forecast merger activity will increase in the next few years.

According to Paul McDonald, executive director of Robert Half Management Resources, relatively low interest rates and deep cash reserves in many corporations are allowing companies to make strategic acquisitions. 

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