These are typically family controlled and in need of dynamic management. There is plenty of scope domestically for 1999 to be another record year, on the basis that the JSE can't get much lower. The depressed equity market makes it extremely difficult to fund acquisitions other than with cash, while high interest rates make leveraged deals unaffordable. So cash flush companies will find themselves in a buyers' market. But that could all change.
Activity is likely to come from a number of other directions as well.
Privatisation is likely to gain momentum, and RMB has acted in a number of deals on a selective basis. Given the tough economic conditions, RMB is better placed than most to make the best of the situation. Companies seeking acquisitions need capital to fund them. Our FNB relationship more so than ever means we are able to provide the capital necessary for deal-making. This places us in a strong position to be the investment bank of first choice.