Look Who Just Showed Up to the Takeover Party
by Robert Williams, Publisher
Thursday, October 22, 2009
Don’t look now, but mergers and acquisitions are back in a big way. September saw roughly $50 billion worth of deals announced involving U.S. companies – an 84% increase over August.
In fairness, we’ve only seen $12 billion worth of private equity deals inked so far this year – a pittance relative to the go-go days of 2007, when U.S mergers topped an insane $1.2 trillion in deal volume. ($280 billion in private equity deals were completed by this point in 2007.)
Nevertheless, a rebound is taking hold.
Even the wonks over at Goldman Sachs (NYSE: GS) agree…
“A combination of rising global GDP, improving equity sentiment and CEO confidence augur a significant pickup in M&A into 2010,” asserted Goldman analysts in an interview with Bloomberg.
Their assessment is quite right. It’s just a little late…
Recall, we already predicted a rebound in M&A market activity back in August and which area M&A activity was most likely to occur in early September.
Let’s check in with our resident takeover specialist Louis Basenese to find out which sector is ripe for consolidation today.
Ahead of the tape,
Robert Williams
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In addition to once being a full-time trader of equities and equity derivatives, Robert Williams has served as the lead financial analyst for a Forbes top-50 private corporation and an analyst for the endowment of a major academic institution. He's also been profiled in such books as Trade with Passion and Purpose and Alexander Green's The Secret of Shelter Island. 
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