Citizens Bank survey says 2013 could be busy year for mid-sized companies
While the American economy continues to sputter, a new survey done for the parent company of Citizens Bank suggests that 2013 could be a busy year for mid-sized companies.
More than three quarters of the companies responding to the survey done for RBS Citizens say they are either pursuing “significant” acquisitions or are open doing some kind of deal at some point in 2013. The survey, which was conducted last fall between mid-September and mid-October involved 330 middle market companies in New England and MidAtlantic states as well as those markets that Citizens Bank serves in the Midwest.
For the purpose of the survey is defined as businesses with revenues between $5 million and $2 billion.
“Clearly, top line revenue challenges and low economic growth rates, coupled with historically low interest rates, are leading many companies to see acquisitions as important to their growth strategies,” Bob Rubino, executive vice president and head of corporate finance and capital markets at RBS Citizens.
Another way that a majority of companies that responded to the survey are looking to boost their revenues while limiting their risks in the tough economy is through new partnerships or joint ventures with other companies. Nearly three-quarters of the companies surveyed say they are actively seeking or are looking to become involved in partnerships or joint ventures this year.
The survey indicates that firms expect to undertake an average of more than three corporate development activities in 2013. In addition to mergers, acquisitions, joint ventures or partnerships, corporate development activities for the purpose of the survey are also defined as raising new capital or reinvesting retained earnings.
Call Luther Turmelle at 203-789-5706.