Deals in the Current Economy

It has been over a year since the credit crunch started. The effects continue to ripple through the economy. The housing market is dismal and the Federal Reserve has resorted to extraordinary measures to prop up the banking industry. The number of big corporate mergers is down sharply. Deals getting done these days are largely financed with money from overseas or from companies using their own funds. What are the lessons learned and what will be the ultimate outcomes?

In this edition of Smith Business Close-Upwith the University of Maryland’s Robert H. Smith School of Business, Alexander Triantis, professor of finance, talks about government bailouts and shakeouts from the credit crunch and the current economic climate for deals.

Prof. Triantis’ research focuses on the design of optimal corporate investment, financing, and risk management strategies, and particularly on the development and application of real options analysis to value investment opportunities and companies.

He chairs the Smith School’s finance department, which is hosting its second Mergers & Acquisitions Competition, October 16-17. Teams of MBA students from top business schools will compete to deliver the winning M&A pitch to Wall Street bankers, corporate executives, Smith faculty and alumni.