NEW YORK-A recent poll of 53 corporate chief executives found more than half predicting they will take part in a substantial acquisition within two years, yet only 30 percent actively consider their own company’s acquisition.
The interviews, conducted by Cleveland-based Christian & Timbers Inc., a retained executive search firm, also indicated 34 percent of the CEOs believe that acquisition will account for a substantial percentage of their company’s next phase of revenue growth.
At the same time, 70 percent of the executives queried said they are tightening operations to drive more profits.
In 1980, 94 mergers took place in the United States. This year, there were 9,442 mergers as of Nov. 18, according to Securities Data Corp. figures cited by Jeff Christian, president and CEO of Christian & Timbers.
“In today’s business atmosphere of consolidation and slowed internal growth, the pressure is increasing on the CEO to make a move,” he said.
“Simply put, they must acquire companies or be acquired. It’s a do-nothing-and-die atmosphere.”
The possibility of more money in their own pockets only motivates a few of the CEOs queried, Christian said.
A small percentage of respondents said the offer price plays a role in deciding whether to sell their companies, “particularly when shareholder value is a primary issue,” he said.
“However, 51 percent would consider a merger if they could retain a leadership position, maintain control and it was viewed as a good strategic move for the company,” Christian said.
