Lots of buyers with lots of cash, in this country and from abroad, as well as motivated sellers, are fueling a rebound in merger-and-acquisition activity so far in 2010. While it may not yet equal explosive pre-recession rates, the M&A boomlet is being pushed by new catalysts, along with continuing market and regulatory uncertainties, observers say.
“Defensive deal-making continued to be the hallmark of M&A activity through the first half of the year,” says Mick Morrissey, principal of Morrissey Goodale, a Newton, Mass., management consultant. “By the end of June, the pace of industry consolidation had stopped declining.” While numbers remain 27% below their 2008 high point, “we anticipate the pace of consolidation to accelerate through the second half of 2010,” he adds.