M&A Transactions on Rise

May 16, 2014

M&A activity is on the rise. The uptick started last year and has continued in 2014. It took a while, but banks are loosening their purse strings, allowing for a much freer flow of cheap capital to fuel acquisitions. This is great news for buy out firms and other financial buyers.

However, on the strategic buyer side, in addition to the availability of bank debt, companies now have an abundance of their own capital due to the record stock market highs. Is this leading to an over-heated M&A market, unrealistic valuations and to a “bubble”? This article highlights the concern:

http://dealbook.nytimes.com/2014/05/13/the-brewing-m-a-bubble/

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: