Prepare for the Next Merger Wave

Where have all the mergers gone? For the past two years, most pundits have expected mergers to increase as U.S. corporations deploy their cash into growth opportunities.

I was one who thought we would see more merger activity by now. It just makes sense. Many sectors are still very cheap, and in the current environment it is easier to grow by acquisition than by organic expansion. The cash is on the books earning almost nothing, so buying smaller companies just seemed to make sense. Private equity and other financial firms also have a substantial cash hoard in search of returns for their investors. Yet deal flow is still anemic in 2012....668 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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