Jeffrey McCracken of Bloomberg News writes that M&A will come back in 2011 as consumer spending drives companies to combine.
The 26 percent recovery in global M&A for 2010 didn’t live up to the expectations of some dealmakers after a dearth of megadeals. In 2010, only two takeovers topped $25 billion, fewer than the four announced in 2009, according to Bloomberg data. At the same time, the number of deals ranging from $1 billion to $5 billion in size jumped 52 percent to 369 in the same period, the data show.
Private-equity firms have made fewer large purchases in recent years, even though they have more than $430 billion to invest, based on figures from Preqin Ltd. There is, however, the capacity for more straightforward corporate takeovers that don’t involve private equity, said Andy Lipsky, head of Credit Suisse Group AG’s mergers and acquisitions for the Americas.
The article covers the waterfront of large deals, small deals, the extent recovery has happened and why it might run in 2011. McCracken, who used to have the same beat at The Wall Street Journal, has the experience to see the forest and the trees, making his take a step above a generic list of quotes by market leaders.