Joblessness Ranks First
The survey showed finance execs to be divided in whether strategic buyers or financial buyers would drive M&A activity in the near future, with 52% seeing more strategic deals and 48% seeing more financial ones. The average Ebitda they count on for retail and consumer-product M&A was 6.6%, lower than the 6.8% and 8.2% quoted for 2010 and 2009, respectively.
Retail CFOs confirmed that revenue (38%) and Ebitda (36%) are their primary financial metrics.
As far as concerns about what keeps consumers away, unemployment was cited as the largest worry (57%) with other issues ranging from fuel prices (17%) to consumer credit availability (14%) to housing-market woes (7%) and inflation (5%.)Looking ahead to the end of the year, unemployment was seen by 63% as weighing most heavily on consumer confidence.
BDO says the full report from the CFO survey will be available later this month, when e-commerce, sourcing and inventory data also are released.
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