Tuesday, November 21, 2006

As Much Money As You Want

There is so much money chasing M&A deals right now that there is growing concern that a bubble may be developing.

As reported in the LA Times, private equity buyers have announced about 1,000 U.S. takeovers this year worth a record $356 billion, according to data tracker Thomson Financial.

Private equity firms have raised an unprecedented $178 billion in new capital from investors this year, about 10 times what they raised in 1995, according to data firm Dealogic.

That's a lot of money!

Back in August, I wrote that the M&A markets were at record levels so this LA Times article isn't new news to my faithful readers. The big questions are "when will M&A activity slow down?" and "will it be driven by buyers who put their foot down on escalating prices or lenders who refuse to provide the increasingly risky business acquisition loans?"

By the way, if funding sources aren't lined up outside your door and you need help finding the right lender or telling your story the right way, read "Matchmaking for Business Loans" and give me a call.

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