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The 3 Things Jim Cramer Watches For When a Company Announces M&A Plans

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With the announcement of a merger and a couple of acquisitions Monday morning, it's time for Jim Cramer to weigh in on what he watches when a company announces plans for M&A. 

But, first, let's break down the companies that have made announcements this week (so far). 

First and foremost, there's Raytheon's (RTN) - Get Raytheon Company Report merger with United Technologies (UTX) - Get n.a. Report in an all-stock deal.

Raytheon and United Technologies announced that the companies are planning on an all-stock merger.

The companies would combine to become Raytheon Technologies.

According to the Wall Street Journal, Raytheon Technologies --which would be valued at more than $100 billion after planned spinoffs, would become the world's second-largest aerospace and defense company by sales behind Boeing (BA) - Get The Boeing Company Report .

And then, of course, there's Salesforce (CRM) - Get Salesforce Inc. Report . The company announced that it was acquiring Tableau Software (DATA) - Get Tableau Software, Inc. Class A Report for around $15.7 billion.

And, finally, there's Merck (MRK) - Get Merck & Company Inc. Report , which announced that it was planning to buy Tilos Therapeutics for over $770 million.

So, when looking at these M&A movements, what should investors keep an eye on?

Jim Cramer says that he watches these three things:

  • Synergy
  • Balance Sheet
  • Management

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