Pace of mergers and acquisitions expected to continue

Earlier this year, we marveled at the pace of mergers and acquisitions in 2015. Essentially, companies were joining forces or being bought at a record pace. Because of how many transactions had occurred, we wondered whether the pace would continue; especially considering the specter of interest rates rising.

In the Fed's September meeting, it was decided that interest rates would be held (at least until the next meeting). As such, corporate mergers and acquisitions have continued at a torrid pace. 

But is it just that interest rates are low enough to encourage these types of investments? A recent LA report suggests that other factors are at work. For instance, the health of the stock market has played an important role in the uptick in mergers. With corporate stock prices higher than normal, companies have the option of selling stocks to generate the funds necessary to finance these deals.

Additionally, some mergers are spurred by changes in the law, particularly the Affordable Health Care Act. As more corporations are subject to the Act, companies in the healthcare industry see opportunities  to reposition themselves and make themselves more attractive as providers.

Ultimately, a deal has to make financial sense. Which is why many mergers are geared towards expanding a company's footprint so that sales and profits could be increased. To achieve these goals, the counsel and guidance of an experienced attorney is essential. A skilled M&A lawyer can help executives understand the risks and challenges with the execution of a transaction, so that informed decisions can be made.

In the meantime, all indications point to continued growth in mergers and acquisitions. 

No Comments

Leave a comment
Comment Information
  • NBLSC Board Certified Lawyer Rated By Super Lawyers | Ryan P. Durham Rated By Super Lawyers | Ben Boston
  • Tennessee Association For Justice | Member 2015-2016 American Association For Premier DUI Attorneys The National Trial Lawyers | Top 100 Trial Lawyers
  • American Institute of Family Law Attorneys | 10 best 2015 American Institute of Personal Injury attorneys | 10 best 2016 AV preeminent |  Jeffery Broker

Schedule a Consultation Today

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Shulman Bastian LLP | Full Service. Business. Lawyers.

100 Spectrum Center Drive
Suite 600
Irvine, CA 92618

Map & Directions

3550 Vine Street
Suite 210
Riverside, CA 92507

Map & Directions