Layoffs are casting a wide shadow across the state: 63 percent of survey respondents saying they've lost a job or seen a friend or relative join the ranks of the unemployed in the past year, up nine points from January.
Survey: Downturn driving discounts on distressed assets By martin c. dakS “With a variety of factors contributing to an private-sector transactions during the next year. to execute an M&A, respondents said. Most of the OVERLEVERAGED BALANCE sheets and neg- increased volume of distressed opportunities, Debt and equity investors “are becom- distressed companies in those industries will try ative cash flows spurred by the recession are both buyers and sellers are expected to eagerly ing increasingly unwilling or unable to grant to solve their issues outside of court, but Chapter leading to steep discounts on distressed assets, pursue deals, as each side stands to gain unique extended grace periods, with cash flow being 11 reorganizations are expected to be “extremely opening up merger and acquisition opportuni- benefits,” said Jim Rosener, managing partner further negatively impacted by increased rates common” over the next year, and could trigger ties, according to a new national survey. at Pepper Hamilton LLP’s New York office. His and accelerated maturities,” said Duff Meyer- more in-court settlements. Ninety-two percent of survey respondents law firm and New York-based Carl Marks Advi- cord, a partner at Carl Marks. The current market is “characterized by believe the current economic downturn is driv- sory Group LLC commissioned Mergermarket An inability to service existing debt, refi- people having to do something, and forced to do ing steep discounts on distressed assets, com- Ltd. to conduct the survey. nance upcoming maturities and negative cash it on a tight timetable,” said Rosener, of Pepper pared to previous slowdowns, according to the Fifty-six percent of the respondents sur- flow are the top issues companies will face in Hamilton. “There is an increased opportunity Distressed M&A Outlook report, which inter- veyed have been involved in a distressed asset the coming year, according to the survey. [for M&A activity] as management loses focus viewed investment bankers, private equity prac- sale in the past year. Of the remainder, some Real estate and financial services will likely and interest over these orphaned businesses.” u titioners, hedge-fund investors and lawyers. expect to get involved in foreclosure sales, and provide the best bargains for companies looking E-mail to firstname.lastname@example.org A growing sense of hope, even as job fears remain By Beth fitzgerald FEAR OF LOSING a job is prompting higher savings by New Jerseyans, but there’s a surge of optimism that they will be better off a year from now, according to the quarterly economic new jersey new delhi survey by Fairleigh Dickinson University’s Sil- berman College of Business. While a majority — 59 percent — said they are worse off now than they were a year ago, only a third think they’ll be worse off a year from now, and 45 percent expect to be better off a year from now. The telephone survey of 716 randomly selected New Jersey adults was conducted between June 22 through June 28, and the quarterly poll is sponsored by Silberman Col- lege and conducted by FDU PublicMind. Layoffs are casting a wide shadow across Is your life bigger than your bank? the state: 63 percent of survey respondents say- ing they’ve lost a job or seen a friend or relative HSBC Group is fluent in banking worldwide. And now we’re adding North Edison to our network join the ranks of the unemployed in the past of more than 9,500 offices in over 85 countries and territories. Come learn about HSBC Premier, year, up nine points from January. the service that seamlessly connects you to global opportunities and ideas. Or HSBC Business “There are sure signs that consumers are Banking, where a dedicated relationship manager will help you navigate today’s business world. continuing to save money as a precaution against uncertainty,” said Sorin Tuluca, professor of Start a new Premier1 or Business Banking2 relationship with a qualifying initial deposit of $50,000 finance at the Silberman College of Business and in new money and choose from a $500 gift card from Apple, a $500 Travelocity Hotel Gift Card,
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