This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Deal Economy: Wall Street Looks Forward to Banner Year for M&A

NEW YORK (The Deal) -- Wall Street dealmakers say that conditions are ripe for a take-off in M&A for 2014. 

Mark Brady, William Blair's global head of M&A, said at The Deal Economy 2014 in New York Thursday, while total dollar transaction in 2013 was up, that was mostly because of the mega-deals, as the number of deals was down. However, looking at his firm's pipeline, there are 119 sell-side deals on tap, compared to 81 last year for the below-$1 billion transaction values. "People are starting to think about taking advantage of market conditions," he said. 

Richard Jeanneret, vice chair of transaction advisory services at Ernst & Young added that there were great fundamentals, including a lot of cash and credit, but there was still a missing confidence element.

However, Stefan Selig, executive vice chairman, global corporate and investment banking, Bank of America Merrill Lynch, said it was more a question of value. "Is it real, or is it Fed policy," he said. Selig noted that the market now is not unlike before the mega deals of 2004. "If you take out the TXUs of 2007, we're on a par," he said.

Must Read: Live: Watch The Deal Economy Conference

Financing for the mega-deals is also something that was a proven fact in 2013. "We were surprised at the institutional appetite for the Verizon Wireless $130 billion deal," he said -- BofA was involved in that financing. "The concern that you couldn't finance is now off the table," at least in strategic transactions, Selig said. 

To the issue of increased shareholder activism, Tagar Olson, KKR's head of financial services noted that the activists at times provided opportunity for private equity to do deals. "We can go in and act as a partner to the board to deal with some of the issues," he said. 

Written by Paula Schaap.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.72 -0.56%
FB $119.49 1.43%
GOOG $711.12 1.38%
TSLA $214.93 1.61%
YHOO $37.23 0.79%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs