Frank Aquila Quoted in Financial Times Article on Scarcity of All-Stock Mergers in 2017

December 7, 2017
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On December 7, Frank Aquila was quoted in a Financial Times article titled “Companies shunned all-stock mergers in 2017,” which explained why the proportion of M&A activity involving all-share deals fell to a record low this year. “We are currently in a period where companies have plenty of cash on their balance sheets and access to a lot more on historically favourable terms,” Frank said. He also commented on the effect of the trend on hostile takeovers. “The seller is unlikely to want to take the buyer's stock because there's a risk that paper value could drop at any time,” he said. However, if the seller believes in a merger's benefits, an acquisition with stock may be seen as positive. “Even if there's a market correction the two companies could buffer the fall in share price thanks to the synergies generated by the merger.”