Troy Gayeski, senior portfolio manager at SkyBridge Capital, talks numbers on what three sectors will see more M&A activity.
Stocks are at record highs and interest rates are still low. So, where are the deals?
So far this year, there have been $631 billion in merger and acquisition transactions compared to $502 billion in 2012.
Still, it’s less than $668 billion in M&A deals back in 2011 and it’s much less than it was before the financial crisis of half a decade ago. Troy Gayeski, senior portfolio manager at SkyBridge Capital, spoke with Talking Numbers about why M&A is still not at their pre-crisis levels. SkyBridge Capital has $8.2 billion under management.
“Basically, it’s a hangover from the financial crisis,” says Gayeski. “Management teams were scarred by the great deleveraging that took place. None of the revenue expectations came to light. They had to delever, recapitalize, and then on top of that, you had the Eurozone crisis flare up and a lot of political dysfunction in Washington. So, you put that together and management teams that erred on the side of excessive caution (some would say) has kept M&A well below where it’s been in previous peaks.”
So, where will we see a rise in mergers and acquisitions? Gayeski says there are three sectors that are ripe for takeovers.
To see where Gayeski says there’ll be more mergers and acquisitions, watch the video above.