Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV

Companies eye partnership deals to counter low growth

by Associated Press

LONDON Apr 26, 2016 - 12:00 am GMT+3
by Associated Press Apr 26, 2016 12:00 am
With global economic growth slowing, inflation staying low and digital innovation generating uncertainty, companies are increasingly looking at partnership deals with other firms, even competitors, to boost revenues, consulting firm EY said yesterday. In its half-yearly review of corporate deal-making, EY found that 40 percent of firms plan to enter alliances of some kind. Such deals can involve sharing resources to undertake specific projects, and are usually informal and less permanent than joint ventures.

Partnerships are becoming increasingly popular. IBM, Apple and Johnson & Johnson and others are working together to develop mobile apps that would help patients. EY itself recently entered into an alliance with LinkedIn to offer services via social networks. "Alliances are increasingly being seen as a means to take advantage of the expertise of others," said Pip McCrostie, EY's global head of transactions. "They provide a more informal, lower risk approach, enabling companies to respond quickly to changes to the market." Elsewhere in its survey, EY said companies remain very interested in acquisitions in order to offset the impact of lower growth. It found that 50 percent of the executives it polled intend to make transactions over the coming year.

Though down from the record 59 percent recorded in October, the appetite for mergers and acquisitions, or M&A, remains well above the survey's seven-year long-run average of 41 percent. In effect, companies look to bolster their finances by purchasing other firms and reaping their profits. In a slower-growth world that has its roots largely in the slowdown in China's economy, deals can help cushion firms' finances.

"Prolonged low economic growth coupled with market disruption is generating a strong M&A appetite," said McCrostie. "Given the pressure on pricing and the pace of change, organic growth alone is often not enough." Companies are also shifting to bigger deals with a five-fold increase in the number of firms looking to make acquisitions worth $1 billion or more.
  • shortlink copied
  • Last Update: Apr 26, 2016 1:12 am
    RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    KEYWORDS
    business
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    No Image
    Pandemic-hit theater back in India's northeast
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021