Outlook 2008: Three Ways to Profit From A Takeover Market That’s Alive and Well

January 14 - Monday Morning - Elvis might be dead. But the mergers and acquisitions (M&A) boom certainly is not. While it’s an admittedly Contrarian stance, I’m convinced the deal-making environment will be even better in 2008 than it was in 2007.

That’s significant, considering that the latest figures from Thomson Financial confirm that 2007 - despite the gummed-up credit markets - was the best year ever for worldwide M&A deals. Total deal volume checked in at $4.5 trillion, up 24% from the previous high-water mark set in 2006. U.S. deal volume also hit record levels last year, jumping 9% to reach $1.61 trillion.

To understand our optimism, let’s examine the catalysts at work in the New Year. There’s a strong incentive to tune in and pay attention: If we’re right, investing in eventual takeover stocks nets investors an average single-day gain ranging from 43.5% to 53.7%, according to recent data from FactSet MergerStat LLC. Read More.