(from NPR this AM)
M and A activity, mostly PRIVATE EQUITY FIRMS!
8 of the 10 LARGEST deals ever were done in last few years and were private equity firms.
More and more of these are running after the same deals pushing up prices paid, HUGE multiples and premiums being paid saddling new companies with mountains of debt.
“the things that used to turn the economy/markets no longer do…” chances for defaults because of huge premiums is growing.
Money continues to FLOW into these private equity firms.
In some ways me bucko’s this is MUCH LARGER THAN 2000 action, it just isn’t seen as same as before meaning huge runups in penny stocks etc, the BUBBLE is in the MA activity and the higher multiples being paid, too MUCH money running after too few deals pushing prices paid up way beyond reasonable value.
Investors are complacent and comfortable with only blue skies seen ahead.
D
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