The sweet spot of M&A

HOW TO PROFIT FROM THE RETURN OF M&A

Joanna Faith finds out how the expected increase in mergers and acquisitions can benefit investors.

After a sluggish period for M&A activity, 2010 saw a reversal of trends. In the first six months of the year, the total number of deals rose by 3.8% over the same period in 2009, according to Thomson Reuters. Among the top deals was Hewlett-Packard’s acquisition of 3Par and the completion of the highly contentious Kraft takeover of Cadbury. As we advance into 2011, this theme looks set to continue, with statistics already revealing the year has been the strongest start for M&A since 2000. Experts believe there are several reasons for this, the strength of company balance sheets being ...