M&A Flash: Rob Bergman on cash stockpiling

Bravura's Rob Bergman explains why investors are holding onto their cash piles during uncertain times.

Political uncertainty and distrust between the public and private sectors are prompting more investors to either not commit to large investment decisions or to be cautious about investment prospects in South Africa.

“There is so much capital waiting to do something,” Rob told M&A Africa.

“There are simply not enough good investment opportunities coming to the market. Acquirers typically value businesses based on future cash flows and they are struggling to form high conviction views around growth and delivery of these flows. There is frequently a significant gap between investors and sellers regarding their views on value and risk, resulting in a low conversion of investment opportunities to closed deals.”

Read more: Cash stockpiling a sign of uncertain times