Earlier this year I posted 10 Forecasts for M&A Activity. Like the past few years, most people willing to forecast thought the outlook for an increase in M&A activity was excellent and gave the same list of reasons:
1) Huge cash piles on acquirers’ balance sheets.
2) Low interest rates which can only move higher.
3) Slow but improving economy.
4) Increasing number of opportunities in emerging markets.
One week does not make a boom but there were a lot of encouraging headlines the past few days:
Jim Cramer of The Street: The Year of the Deal Marches Forth – “It's the year of the deal. People just don't recognize it. Stocks have done nothing for years. The good ones have done nothing. The bad ones have done nothing. A handful of stocks stole the spotlight, and the rest have been dogs.” The M&A market is ready to explode…
NY Times DealBook: Confidence on Upswing, Mergers Make Comeback
Wall Street Journal: Shopping Spree for Wall Street
After 5 slow years, we’re hoping this week’s consensus is on the mark.