Of course, an upturn in deal-making benefits one group the most: M&A advisory firms. The three publicly-traded firms that investors can play the M&A trend with include Lazard (LAZ)., Evercore Partners (EVR) and Greenhill Partners (GHL).
Analysts expect these firms to boost revenue at a 10% to 20% clip this year, though those forecasts that M&A activity remains fairly quiet. If history is any guide, these firms can see their shares move up quickly once the M&A activity kicks into gear.
Watching for "Merger Monday"
Companies like to announce deals on Monday mornings. That gives both parties the entire weekend to cross the t's and dot the i's without risk that word will leak out. So it pays to watch the action on Mondays. Once a specific deal is announced, other firms in the same field quickly realize that they need to keep up, and they start to formulate their own deal-making plans. Case in point: In the summer of 2010, Dell (DELL) and Hewlett-Packard (HPQ) engaged in a bidding war for data storage firm 3Par (HP ultimately prevailed). Within months, 3Par's rivals, Compellent and Isilon, were also snatched up, delivering robust profits to shareholders that had the foresight to ride the M&A wave.In the second part of this look at M&A trends, we'll more closely identify companies that may get acquired -- at a solid premium -- in coming quarters.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV