Nailing Down Prime Buyout Targets

One of the market's themes in 2014 has been the huge increase in mergers and acquisitions. In the first half of the year, based on total transaction amounts, global M&A activity ran more than 50% above that seen in the same time frame in 2013 -- and last year was already seeing a solid amount of deals. Right now, activity levels are getting close to those of 2007.

There are myriad reasons M&A activity is increasing at such a fast clip. One is that corporate balance sheets have excess cash to deploy. Another is that organic growth is hard to come by, given the uncertain state of the global economy. Tax inversion also seems to be the flavor of the day, and that is driving a variety of mergers, especially in the drug industry. Financing rates remain low, and the market has been very supportive by usually bidding up the stocks of both the target and the purchaser at the announcement of the deal....498 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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