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IN the
next three years, 50 percent of local privately held
businesses (PHBs) plan to grow operations through
acquisitions despite the turmoil in financial markets
worldwide, according to the recent International
Business Report (IBR).
The
report was produced by Grant Thornton International and
released by its member accounting, tax and
business-advisory firm Punongbayan & Araullo (P&A).
Among
the PHBs that hope to do such strategy are business
leaders who expect cross-border acquisitions (at 63
percent optimistic level); those who assume acquisitions
in the local market are at 25 percent.
“This is
a very positive indication that Philippine businesses
are now ready to compete in the global acquisitions of
businesses and expand their operations offshore,”
declared P&A’s Transaction Advisory Services head
Francis Albalate in a statement.
Cited as
examples of aggressive moves of PHBs were IPVG’s IP
Contact Center Outsourcing Inc.’s (IPCCO) stock-purchase
agreement with US-based contact center Influent or
Interactive Teleservices Corp. to acquire 70 percent of
the call center for $14 million in last week of March;
the successful acquisitions of Asian Spirit and
Southeast Asian Airlines (Seair) by juice king Alfredo
Yao; and the announcement of beauty and personal- care
product manufacturer Splash Corp. of plans to acquire
two local brands within the year to strengthen its
position in the health-and-wellness market.
“PHBs
see domestic and international M&A [merger and
acquisition] as a key strategic tool to drive growth.
It’s one means of progressing up the value chain through
the acquisition of brands,” explained Greg Navarro, P&A
managing partner and CEO.
Cited as
yet another indication of aggressiveness and willingness
to compete is the banking industry’s appeal to the
Bangko Sentral ng Pilipinas (BSP) to also consider
mergers among smaller-sized banks and establish more
financially stable banks besides the recently merged
Banco de Oro-EPCI Inc., now the country’s second-largest
bank by total assets.
The
paper said 22 percent of Filipino business leaders who
were surveyed expect their businesses to undergo a
public listing in the same acquisition span of three
years.
Companies such as San Miguel Brewery Inc. and Viva
Communications Inc. had their applications for listing
on the Philippine Stock Exchange soon approved this
year.
“Public
listings, of course, have been adversely affected by the
bearish stock market since the subprime- market
collapse,” explained Navarro.
“However, several IPO plans are still a go, albeit in a
wait-and-see status,” he said. |
