Investment Insights looks at the macroeconomic drivers to this boom in deals, whether they are likely to continue and what this says about the economic cycle. The key question for investors is whether this M&A boom is a short-term anomaly or something more substantial and sustainable that will influence markets over a meaningful horizon. We believe it is the latter.
In truth, the case for increasing M&A globally over the next one to two years was already compelling even before the US government's objections to the AT&T/Time Warner deal were so comprehensively dismissed. With a perfect storm of strong global growth, cash rich corporate balance sheets, low borrowing costs, high levels of corporate confidence and technology-led structural change across industries, it comes as no surprise that 2018 was already shaping up to be a record year of corporate activity.