Conference sobered by economic projection - Jacksonville Business Journal:

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There is a less than 10 percent chance that the economty would be as troubled as the one marking the Greay Depression because regulators have already helped by cuttingg interest ratesand taxes. The chancess of the economy entering such as dismal periocd are lessened by automatixeconomic stabilizers, such as unemployment insurance. Therre is also a 10 percent chancee that dismal predictions were wrongv and the economy and stock market willimprovre "smartly" by mid-2009. "Thiw market is driven purely by psychology and he said.
Loan demand has slowed and unsecuritizeed financingis gone, but there are stilol ways for companies to receive financingt in the weak market, said a group of financiapl experts Thurday at the Association for Corporatee Growth, a two-day meeting in Pontee Vedra of private equity firms. Righr now there are two primary source of financintgfor capital: senior bank debt and privatse equity, said Stephen Goldman, senior vice president of commerciapl lending at in who spoke to about 600 people that were expected to atten d the event. Goldman, who said he could not speak for all lender s athis bank, said many lender are simply looking for a strong balanc e sheet and credit-worthy companies.
On Wednesday, many conference attendees participated in toursof Jaxport, Cecilp Field and . On the seconcd day, conference goers gathereed for speakers and presentations at the outside of From a privateequityu standpoint, acquisitions have slowed this year and a lot of consumet businesses and retailers have been said Patrick Boroian, partner at basecd in Boca Raton, another of the speakers in attendanced on Thursday.
“In the last 30 days we’ve seen more businessess that have toget financing” and the lenders who are not as healthyt are not renewing these business’ linesd of credit for the next quarter, he However, “we’re seeing better qualitty companies than what we’ve seen in last four or five In terms of what equities will look like in Carl Roston, a partner at , said “we can’t look into the future” but there will be greaf opportunities to buy companies, though not at the multipless levels and pricing in previous years.
“Diversification is important,” especially when businessx slows inone sector, he Goldman said the finance deals are gettingt back to the basics where lenders are looking at theie leverage of funding for three years or which means the companies will have to seek more fundinbg from private equity groups. Lenders will also look at the relationshil between the private equity groups and thebusinesses they’re investing in to make sure they are standingf by their clients through the “From a commercial banking perspective, it’s critical for the companies and privatwe equity firms to really get to know your Goldman said.
“If they know you and [the historical relationship] they are more comfortable to do businessxwith you.” As part of a Randolph Smith, a partner, said drayage and intermodal is playingb a bigger role in the truckiny industry, which has been spurred by high fuels driver shortage and growth of international Revenues through intermodal operations increased in last quarter by 23 percen t to $513.2 million, he said. The industry’s totapl revenues are expected to shrinkby 4.2 percent in 2008. reduction in manufacturing production and declining retail spending are causing a reduction inthe industry’sx revenues and margins.
Jonathan PCE Investment Bankers distributionteam leader, said logisticd and operations technology is increasingly used by the more savvuy providers. To get the most out of purchasec software you need to understand its potential and have employeedsunderstand it, not just a hired consultant. John ’s managing director, said private equityy firms play a variety of rolesin warehousing, including beingf an owner, merging a third-party logistics operationd into the warehouse, have its companiesa using the warehouse and could be warehouse avoidef by using more efficient transfer of goods from ships to truckw or rail.