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From an investing education angle, when you see a merger or an acquisition, what are three signs that it's good for both companies? First you gotta see synergies and there's ample syndication and cashflow, in the United Technologies, Raytheon deal. Second, you want to see who staying. So for instance, if the, if the person who's being, if the company being bought has a strong leader, Adam Selipsky in the case of Salesforce, then that's good. Tom Kennedy will be going on as executive chairman. Candidly, Greg Hayes is really the better one to run the company. And then the third, I always like to see the balance sheet. I'm really fixated on balance sheet because as long as the balance sheets good, I'm willing to stick my neck out and the balance sheet for United Technologies is going to improve, improve radically because Raytheon has an amazing balance sheet. United Technologies, no. Together it's going to be really good. So I like balance sheet. I like synergy and person. And now those are very, you know balance sheet and synergy. Synergy's always, everyone, always counts on synergy. No one looks at balance sheet enough, and no one looks at management enough. And those are things that I bring to the party that others just seem to not be able to get. Maybe because they're doing traditional analysis, which I find to be a fatuous.

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 Report) merger with United Technologies (UTX - Get 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 Report) .

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

And, finally, there's Merck (MRK - Get 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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