Record October for M&A Deals - Reflects Current Market Conditions
The US M&A market is on a roll, which is good news for both sellers and buyers in the middle market.
A series of high-profile deals announced in October makes it the biggest month ever for M&A transactions and even surpassed the epic deal-making surge in January 2000. Mega deals are driving activity and are almost too numerous to count, e.g., the oil-and-gas business combination of General Electric and Baker Hughes, the telecom tie-up of CenturyLink and Level 3, and AT&T’s acquisition of Time Warner, etc.
Another good example in the global semiconductor sector is Qualcomm’s US$47 billion acquisition of NXP Semiconductors, which notched the biggest semiconductor-targeted M&A deal on record globally.
So far this year, US$1.6 trillion of M&A transactions have been announced in the domestic market. It reflects easy financing conditions, more confidence in the economic and business outlook, and keen foresight on the part of management teams.
The current economic environment of low interest rates and high stock prices has encouraged deal-making. Cheap borrowing costs make it easy to finance deals, while high stock prices provide companies with higher valuations.
With unprecedented economic conditions, owners of middle-market businesses, in particular, have a continued incentive to start or keep doing deals.
Versailles Group is a Boston-based investment bank that specializes in international mergers, acquisitions, and divestitures. Versailles Group’s skill, flexibility, and experience have enabled it to successfully close M&A transactions for companies with revenues greater than US$2 million. Versailles Group has closed transactions in all economic environments, literally around the world.
Versailles Group provides clients with both buy-side and sell-side M&A services, and has been completing cross-border transactions since its founding in 1987.
More information on Versailles Group, Ltd. can be found at www.versaillesgroup.com.
For additional information, please contact
Founder and President
+1 617-449-3325
November 15, 2016
