Report: Most Negative M&A Outlook in History

" Dealmakers in the country say that all very few deals to be had -- that we're talking about mergers and acquisitions. Almost 90% to deal makers right the current -- market -- to pull off. Well let's claimant has more for us from the AC into growth conference in Las Vegas right in the middle of the dealmakers -- for us."

" While I'm so glad we're here at the association for corporate growth event there are 12000. Members and thousands of them are descending upon the Wynn hotel here in Las Vegas because. The atmosphere has become so competitive there are fewer players fewer deals but here it is sort of the meeting of the minds between private equity and investment bankers. Adhere to talk about it about that brand -- survey and you just referenced how left a negative the outlook is Stuart. Is Michael -- he's the vice chairman of the HCG and here we are the -- growth 2009 conference thank you. For having us here thank you very much -- figures but I I would like to say you know at it when people -- have got good news and bad news what do you want first. I was -- about -- first. Let's get to the bad news and that is that horrible number at the top 90%. Of people surveyed that you have just released really feel that the atmosphere is --"

" Who has been terrible and Q1 2009 total volume for a minute mergers and acquisition activity. Was down about 40%. That's out of 490 billion dollars. The middle market was down to ninety million dollars in comparison to 2008 Q1. And that is a significant reduction countries the first sub 100 billion dollar quarter since 1996. Okay so obviously we're not even in outlook and people start making the baseball analogies are in the third -- we are here. You know according to a survey people are feeling very comfortable with where we're in terms of a bottom over the next six months majority of our members who would you like to do will -- we're sort of a little bit more coffee."

" With multiple screens up to serve and we've already referenced the first one of that is that about 88% say the -- mergers and acquisition environment is either fair or poor but at the center of all of them. We're talking about the credit crunch no one can get credit to do these deals and part of your survey involved talking about that we're the biggest obstacle to private equity guys are really begging for money."

" The biggest obstacle is a credit crunch and again now we're start -- for more members of belief that that is going to begin to improve. The second issue that is facing -- market in terms of an obstacle. Does the separation between value to the sellers wonder except for the business person what a buyer is willing to pay. -- dislocation valuation is also an issue the -- be resolved in conjunction with the credit market."

" Look can we talk about -- help we just had another stab from your survey about the deep faults and that is 57%. A portfolio companies aren't covenant default -- their lenders and that just looks terrible that means that whatever these guys bought the company's. That value has changed and people started to --"

" Absolutely there was some extreme values are repaid in recent history and it's coming back to roost for a lot of companies who we are seeing though is that some. Private equity firms see this as an opportunity. It has been challenged but they're seeing opportunities and distressed companies distressed distressed companies. Primarily manufacturing distribution but also -- business services and financial services healthcare business services financial services -- distressed. Desperation. Definitely desperation what you have now as a lack of credit you have. Credit agreements that were perhaps price that fell to fifteen now they're trying go back up the markets -- the L 62 in terms of pricing defied that LT fifties like it's Libor plus 250 basis points in revenues in dramatic increase in the interest possibly companies facing. Now in conjunction with the economy that we're trying to wade through -- very difficult for companies expect to UC optimism at this point or and I don't push you on this because look we call up like -- CNN fox and I think that that's important Fox Business to make sure that people understand the real landscape. -- there's optimism but it's cautious optimism again we need to have those credit markets begin to use a little bit we need to have those valuations of the dislocation perspective of sellers willing to except pursuant buyers willing to pay. If those become closer together I think we'll have some exciting time tell our viewers."

" Why this matters there are some people out there who have a pension or maybe they're for a one candidate what I want you to know about private equity what is the value. A private equity deals in the grand scheme of the financial world."

" It was -- mention in the in the first quarter 2009 there -- 98 billion dollars worth of them and they activity. In this country and with that in mind there's a significant amount of deals are going to be done private equity is still a huge players will be. -- probably some consolidation in the industry but it's going to be a factor for business owners for companies going forward --"

" Deals get done at this conference because it instantly you know on the golf course with a handshake away but what about here are more people -- funny coming to these types of conferences in this patents. Absolutely -- colonel Fisher's been very good even with the environment we just discuss deals -- as we speak. Michael -- and not a positive note with the ACTV association for corporate growth we thank you very much that -- note of this event is Boone Pickens Stuart I'll be moderating the fireside chat. With Boone Pickens right after 4:15 PM eastern time we'll have an exclusive interview with the on about the business landscape about his. Energy plan that he loves to talk about but also what you were just discussing with Dave Ramsey. And that is the government getting more involved in private business what does he think about all that more coming up live from Las Vegas at the HCG event back to you good stuff back from."