It was only a matter of time and the planets aligning in the correct configuration.
Credit markets are buoyant, private equity's techniques look increasingly attractive to and imitable by corporations, structured finance is scaling new heights of innovation each day, and aspiring giants want to make their presence felt outside their traditional markets. What more could one expect but this? Onward ho, I say.
Link: FT.com / In depth - Small fry stir corporate waters (subscription may be required)
Chief executives are increasingly inclined to plot bids for companies that are far bigger than their own, thanks to the availability of cheap debt and creative structures devised by investment banks.
In recent weeks smaller companies in several sectors, surprising many investors with their audacity, have made bids for larger rivals that they could not have pursued in earlier times.
The moves, mainly made in the US, highlight how the world of debt-fuelled deal-making has expanded from its traditional practitioners in the private equity industry.
Now it also includes publicly traded companies with aggressive mergers and acquisitions strategies.
Technorati Tags: banking, structured finance, private equity, finance, M&A
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