Sunday, July 22, 2007

M&A in Trouble? Not Necessarily

July 21 - WSJ - The merger-and-acquisition boom looks as though it's in trouble. Bond and loan markets are tightening, which will make it tougher for private-equity firms to raise the cash they need to finance leveraged buyouts.

But Robert Keiser, an analyst at Thomson Financial, has tried to cast a different light on the doom and gloom.

According to Mr. Keiser, a vice president in Thomson's Proprietary Research group, there is a 67% correlation between economic activity and M&A activity going back to 1990. Though the economy may be slowing a bit, it's still growing at a healthy clip of roughly 3% annually. Read More.

No comments: