2013 - The year of M&A deal growth
Will 2013 be the year M&A deals get a boost? I don't know what you monkeys think of Jim Cramer but he seems to be pretty adamant that 2013 will be a good year for M&A deals. According to Cramer, most deals were driven by fear during 2012 - with the extreme uncertainty of the fiscal cliff, troubles in Europe and the supposed end of the world, it's no wonder number of deals were on par with those of 2011.
With the balance sheets looking good for a lot of tech companies and the impending patent war, take over targets for specific patents will be a key driver behind M&A deals. The defense sector is looking poised to capture high quality take over targets as well. In a few months, the government is planning on cutting the defense budget by 200 to 500bn. How can they brace themselves from this event and increase their earnings per share in return? Acquisitions of fundamentally sound companies. With the immerse cash pile of so many F500 companies and their desire for growth, it's hard not to agree with Cramer's prediction.
Everyone seems to be catching not only the flu but a bit of optimism as we go into 2013 - the S&P 500 ended today at a 5 year high, natural gas prices hover at $3 from $10 in 2008, and Ray Lewis gets one more shot at a Super Bowl championship. What's not to like?
M&A Deal Info
http://www.mergermarket.com/pdf/mergermarket_Legal_Advisor_Round_Up_2012.pdf
Jim Cramer Videos
http://www.thedeal.com/video/corporate-dealmaker/jim-cramer-on-why-ma-will-surg.php
Thinking about raising a fund to short Jim Cramer and everything that comes out of his mouth.
Not that I don't hope that M&A picks up.. just his saying it makes it seem less likely.
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