Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  U.S. Mergers & Acquisitions (M&A) Deal Volume
Posted Under: Themes

 

View from the Observation Deck 

  1. Today's blog post is just one more example of how the recovery following the 2008-2009 financial crisis has broadened, in our view.  
  2. If stock dividends are a barometer of the financial strength of a company, M&A activity is a barometer of the strength of the overall economy, in our opinion.
  3. CEOs are more likely to make acquisitions if they are optimistic about the forward-looking prospects for the economy.
  4. As indicated in the chart, the dollar volume of announced U.S. M&A deals fell below the $1.0 trillion mark from 2008 through 2013. The 10-year low was $690.3 billion in 2009.
  5. M&A volume in 2014 ($1.37 trillion), 2015 ($1.87 trillion) and 2016 ($1.49 trillion), however, eclipsed the amount posted in 2007 ($1.34 trillion), just prior to the 2008-2009 financial crisis.
  6. M&A deal making is off to a good start in 2017. In Q1, U.S. volume totaled $300.2 billion, up 19.4% from Q1'16's volume, according to Mergermarket. The average disclosed deal size was $723.8 million, up 51.8% from Q1'16's average.
  7. While multibillion dollar mergers tend to garner the most attention from the financial media, most deals involve small and mid-sized companies, which is why we included the price performance of the S&P Composite 1500 Index in the chart.  

This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions and other expenses incurred when investing. Investors cannot invest directly in an index. The S&P Composite 1500 Index is a broad-based, capitalization-weighted index comprised of 1,500 stocks from the S&P MidCap 400 Index, S&P 500 Index and the S&P SmallCap 600 Index.

To Download a PDF of this post, please click here.

Posted on Thursday, April 20, 2017 @ 2:24 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
Sell in May and Go Away! What is so Scary?
US Stocks Ended April 13, 2017
US Economy and Credit Markets Ended April 13, 2017
A Snapshot of Growth vs. Value Investing
A Snapshot Of What Investors Are Paying For Stocks
US Stocks Ended April 7, 2017
US Economy and Credit Markets Ended April 7, 2017
One Measure Of Corporate Cash Holdings Just Shy Of $1.5 Trillion
Technology Stocks Have Delivered Strong Returns In The Current Bull Market
US Stocks Ended March 31, 2017
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2020 All rights reserved.