Global Finance Magazine: Corporate Finance: Sovereign Wealth Funds Prepare To Take More Active Role In M&A

Mirtchev, A. (2009, October 1). Corporate Finance: Sovereign Wealth Funds Prepare To Take More Active Role In M&A. Global Finance Magazine.

Global FinanceDr. Alexander Mirtchev, President of Krull Corp., considers the extent to which the signs of revitalization in the international mergers and acquisitions market point to a resurgence of market confidence and a new stage of global economic recovery.  While the revival in international M&A activities has often been interpreted as one of the “green shoots of recovery,” Mirtchev believes that the rationale for the recent resurgence reflects not only the expectation of prolonged recovery in the eventual post-crisis period, but also indicates the intrinsic process of repositioning that multinationals seem to be undergoing. From his perspective, the increasing number of major corporate alliances and acquisitions correspond to a drive to develop synergies between corporations that will, on one hand, position them well in the long term and reinforce more balanced global economic growth, as well as provide them with a new level of influence propagated across state borders, on the other. In this manner, non-state actors are generating new resources and tapping alternative and non-traditional income streams, which in turn points to new avenues for a solid post-recovery growth, but outside the previous boom-bust cyclical framework.