Mar 012010
I’ve often said that one way out of the current economic mess is through an M&A boom.
Theoretically, an increase in M&A activity would ‘unlock’ hidden value in assets and free up capital for more productive investments. Of course, anyone who recalls some of the disastrous marriages that occurred at market peaks (AOL – Time Warner) probably has a negative view on M&A. However, these failures are usually the more publicized events and often occur at market peaks. The media ignores the successes.
Why M&A now?
Companies once again have access to credit. Companies have tons of cash on the balance sheets. And companies cannot grow revenues organically. This is the perfect environment for M&A activity to pick up.
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