Summer Forecast: M&A Heats Up

M&A activity is at the highest level it’s been since before the recession in 2007. We’ve been talking about an uptick in deal activity since last year and now we’re finally seeing real traction. So far in 2014, there have been $1.7 trillion in deals.

In Q1 2014, US deal value was up 56% and the number of deals increased 36% when compared with Q1 2013, according to MergerMarket data.

This boom in M&A activity can be partially be attributed to a “follow the leader” mentality. When large, companies like GE start making highly publicized acquisitions, other executives are inspired to follow in their footsteps. In addition, over the past couple of years, many businesses have also held off on acquisitions due to the economic climate. Now, as the economy recovers, they are ready to execute strategic acquisitions.

I’m excited to see what deals emerge in the remainder of 2014 and will be on the lookout for interesting strategic acquisitions.