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In my last article, I reported on the record high level of activity in mergers and acquisitions in 2015, focusing on deals valued at $50 million or more. That activity was a function of low interest rates, economic stability, a stronger stock market and balance sheets, demographics and overall growth acquisition strategies. We are seeing some of the same factors in early 2016 as well.
In general, the outlook for the year looks strong and companies are on a mission to grow. Many industries are incorporating M&A into their strategy as a growth vehicle, particularly in those industries where disruption is a good thing.
The key drivers for this positive outlook in M&A growth are an environment of prolonged low interest rates and low inflation. These key economic factors are causing many industries to continue consolidating, which serves to reduce excess capacity and increase profitability, which results from economies of scale and scope.
Since 2008 and the Great...