As the New Year begins, expectations in the M&A are high. There was an overall decline in activity in 2016 as compared to 2015. To most of the deal makers, it is due to the uncertainties that come with political environment. However, as the year unveils, stabilization in the new administration will dictate the market, with predictions of favors in the Mergers and Acquisition markets.

2017 Expectations in the Merger market.

2016 showed a drop in activity by a 25% decline in activity and reduction in deals. According to M. Bolsinger from Dechert; there are a lot of expectations from the new administration; running from changes in tax policies, interest rates, to other macroeconomic drivers. It is until the changes stabilize that great deals in M&A will crop. Bolsinger is also optimistic on the available opportunities in the financial sector based on the president’s elect promise to replace Dodd-Frank. From his perspective, there is uncertainty of performance in the environment and healthcare sectors.

It is also expected that M&A importance will be of significance in 2017. The US$1.7tn is the amount of money reported to be lying idle in the financial sectors, which is expected to be put in the M&A market for a significant whopping change. Also, there is the need to invest in the organic growth around the world. According to J, Packee, Baird, most investors concentrate on the inorganic investment. It is reported that dry powder stood at US$800bn in Q3 which would have been invested in the sector.

Stock Market

The first quarter of 2017 is expected to show an increasing trend in the deal activity due to the sudden drop of uncertainties from the pre-election period. According to Eurazzo, who works for an international investment company in Paris, the drop in uncertainties can be seen from the trends in the US stock market.

In addition, higher expectations in the M&A deal sector is linked to the emphasis on quality of deals in 2016 which slowed down activities. It is however expected to be different in the first and second quarters of 2017, since there is more confidence in the inventory deal as high quality deals venture the market.

Expectations in the private equity activity in 2017

It is reported that private equity activity in 2016 in North America remained strong, which is in contrast with the drop in the corporate M&A. In the first, second and third quarters of 2016, there were 781 private equity deals valued at US1bn, which is just five fewer from 786 deals in 2015. The technology, industrial and chemicals, and the business services sectors are the top three sectors that largely contributed to the private equity deals in 2016.

According to West Monroe, the last seven years have recorded such a high competition in the private equity deals. This is due to the emphasis in quality deals, speed and valuation, and availability of active strategic buyers. Also, the financial sponsors have made the private equity business easy and convenient. This is because, private equity firms assemble portfolio companies and then roll up add-ons to those companies.

However, according to Bolsinger, the high competition is due to: fewer and fewer large-cap deals; and availability of very acquisitive strategies that sit on a lot of cash while still fostering big threats to the private equities.

Eurazzo sees the long term deals between a business owner and a private equity firm much more sufficient than the short term deals. This is due to the fact that businesses take long to be more productive.

The driving force of the increase in the inbound deal value by 21% in mid-market M&A.

The inbound deal value went up by 21% to US$22.9bn in Q1-Q3 in 2016 especially from the Asia based acquirers. The Asian countries engage in M&A for various reasons such as acquiring better technology or to expand their market share.

The success of great deals in M&A is the buying of beneficial brands and investing back to the countries’ businesses to enhance them. Also, a strict state control helps in improving M&A deals as evident from the China State Council.

The challenges facing the M&A deals.

Cultural differences makes it difficult for some investors to invest and succeed in foreign areas. This is due to political and cultural differences, as well as communication barriers. However, buying a well-established business can conquer the challenges.

The expansion of private debt for M&A activity.

In 2016, the closed end private debt fund had more than US$131bn, which is the highest amount recorded ever. The increased debts according to Monroe is due to the low interest rates. Also, investors have turned up in large numbers to seek for direct lending, which proves to be more convenient rather than the traditional way of banking market.


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BSE-16.05.2014Indian stock market made history today. Indian stock benchmarks Sensex crossed 25,000 and Nifty crossed 7,500 mark respectively. Rupee also strengthened to 11 months high against US dollar. This is all because India gets its long waited single party government in the Lok Sabha election 2014. BJP led by Narendra Modi is the prime creator of this magic.

Sensex climed 1470 points to touch the all time high of 25,373.63 and ended on 24,121.74 points. Nifty also climed 440.35 points to hit 7,563.50 and ended on 7,203 points. Modi Magic

Indian rupee today gets strengthened to 11 months high of 58.62 against US dollar and ended on at 58.79.

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By financen | May 14, 2012 - 4:20 pm - Posted in Stock Market

Millions of people already have their own ISA, but if you are completely clueless when it comes to stocks and shares ISAs, don’t worry. This guide offers you a beginner’s introduction to the subject to give you an overview of what they are and some key points you need to know if you are thinking of investing.

  • What is a stocks and shares ISA?

First of all, let’s look at what a stocks and shares ISA is. Essentially, it is a type of investment account that invests the money you put into it in the stock market. Depending on the specific account you get, it might invest in different types of companies.

Then, if the shares your money is invested in grows, you will earn dividends. These dividends can then be reinvested or you might be able to withdraw them, depending on the specific account you have.

  • What is the annual savings limit?

One really important point about the stocks and shares ISA is that there is an annual limit as to how much you can put into your account. For the current tax year (2012/13), you can save up to £11280 in your investment ISA. Alternatively, you can also save up to have of that amount in a cash ISA. It’s also worth remembering that you can only open one new stocks and shares ISA per tax year, and even though you can hold multiple ISAs, the £11280 limit is the overall limit for all of your ISAs.

  • What are the risks?

Now let’s have a look at the risks of the stocks and shares ISA. As we have already seen, it is a type of investment in the stock market. This means that as well as the potential to earn dividends, your money can also go down as well as up. This will depend on the performance of the stock market. You are usually recommended to save for the long term with a stocks and shares ISA to give your money the best chance of growing.

  • What are the benefits?

One big benefit of this type of account is that it is tax-free. This means that if you earn dividends on your money, you won’t have to pay any tax on them. This is one of the main reasons these ISAs are so popular with investors.

Also, if you choose the best stocks and shares ISA you can find, the fund will be very careful about where they invest your money to give it the best possible chance of growth. The flexibility of being able to save part of your annual allowance in the form of cash is another benefit that appeals to many people.

  • How do I choose an account?

When you are trying to choose the best stocks and shares ISA for your needs, it is important to do some research to see what is out there and the kind of account that might work for you. As well as past performance of the fund, look at things like the terms and conditions, the fees attached, how easy it is to access your money and the reputation of the provider to ensure that your investment has the best chance of success.

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By financen | May 19, 2010 - 3:52 pm - Posted in Economy, Stock Market

Worries about Europe’s debt problem grew after Germany and the stocks were falling again today. In the morning the Dow Jones Industrial Average had lost 74 points and down to 10,437, Nasdaq was down to 17 points to 2,300, and S&P had down to 1114 after lost 6 points.

Germany’s ban effect the euro as it continues to fall. After Germany’s announcement euro fell down in the morning to the 4 year low of $1.0144.

What is short sell?

It is a bet that short sellers play, they expect that the value of an asset will fall.

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By financen | November 26, 2007 - 6:33 am - Posted in Stock Market

There are only few measures to prevent the type of crash that occurred in the stock market in the year 1929 or in 1987. The biggest question is can their be another crash? Or will the measures adopted really work? No one knows the answers for sure, but it is reasonable to assume that many people in this industry are working everyday to make sure that the disaster is not repeated again.

The stock market crash in the year 2000-2002 was quite painful, but if you think it was big enough, see the list of the ten worst crashes. It barely made to the list of the ten worst markets crashes in U.S. history.

Worst Stock Market Crash Ever:

Date Started: 4/17/1930
Date Ended: 7/8/1932

Total Days: 813
Starting DJIA: 294.07
Ending DJIA: 41.22
Total Loss: -86.0%

Investors lost 86% of their money over this 813 day beast. If you had $1000 on 9/3/1929 (beginning of the 4th worst crash, it would have gone down to a whopping $108.14 by July 8th, 1932 (end of the worst crash) or an 89.2% loss.

2nd Worst Stock Market Crash:

Date Started: 3/10/1937
Date Ended: 3/31/1938

Total Days: 386
Starting DJIA: 194.40
Ending DJIA: 98.95
Total Loss: -49.1%

Investors thought the market was finally good again, following a recovery of almost half of the great depression losses, the market plunged again due to war scare and Wall Street scandals.

3rd Worst Stock Market Crash:

Date Started: 1/19/1906
Date Ended: 11/15/1907

Total Days: 665
Starting DJIA: 75.45
Ending DJIA: 38.83
Total Loss: -48.5%

This crash was called the “Panic of 1907.” The U.S. Treasury department bought 36 million dollars worth of government bonds to offset the decline

4th Worst Stock Market Crash :

Date Started: 9/3/1929
Date Ended: 11/13/1929

Total Days: 71
Starting DJIA: 381.17
Ending DJIA: 198.69
Total Loss: -47.9%

It was the shortest market crash observed but the effects were deadly. Investors saw almost half their money disappear in just two months. Often this crash is the worst in most people’s minds.

The 5th worst stock market crash:

Date Started: 11/3/1919
Date Ended: 8/24/1921

Total Days: 660
Starting DJIA: 119.62
Ending DJIA: 63.9
Total Loss: -46.6%

This crash followed a post war boom (Stock prices rose 51%). After the crash bottomed out in August of 1921, this decade saw tremendous growth in the stock market and the economy (often called the roaring twenties).

6th Worst Stock Market Crash:

Date Started: 6/17/1901
Date Ended: 11/9/1903

Total Days: 875
Starting DJIA: 57.33
Ending DJIA: 30.88
Total Loss: -46.1%

DJIA records are not available before 1900. Take a look at the following facts to draw perspective of what things were like during this period.

  • Life expectancy in the U.S. was 47
  • Only 14% of homes had a bathtub
  • Maximum speed limit in most cities was 10mph
  • Average wage was 22 cents and hour – avg salary/year was about $300
  • More than 95% of all births took place at home
  • Only 6% of the population had graduated from High School
  • The #1 cause of death was Pneumonia and Influenza
  • The American flag had 45 stars

7th Worst Stock Market Crash:

Date Started: 1/11/1973
Date Ended: 12/06/1974

Total Days: 694
Starting DJIA: 1051.70
Ending DJIA: 577.60
Total Loss: -45.1%

This was another long market crash and people have remembered it for a long time. Think about the Vietnam and the Watergate scandal during this time.

8th Worst Stock Market Crash:

Date Started: 9/12/1939
Date Ended: 4/28/1942

Total Days: 959
Starting DJIA: 155.92
Ending DJIA: 92.92
Total Loss: -40.4%

It took nearly 3 years to recover from this crash! With WWII and the attack on Pearl Harbor, the markets had a very tough time.

9th Worst Stock Market Crash:

Date Started: 11/21/1916
Date Ended: 12/19/1917

Total Days: 393
Starting DJIA: 110.15
Ending DJIA: 65.95
Total Loss: -40.1%

The market during this period suffered about a 40% loss. It’s difficult to break even after a 40% loss. On a $1,000 investment, your portfolio went down to $600. To get back to $1,000, it would have to go up 66.7%!

10th Worst Stock Market Crash:

Date Started: 1/15/2000
Date Ended: 10/9/2002

Total Days: 999
Starting DJIA: 11,792.98
Ending DJIA: 7,286.27
Total Loss: -37.8%

This crash required the longest recovery time of all crashes in this list. The combination of the tech bubble bursting and the September 11th terrorist attack served a deadly blow to the stock market, but relative to markets past, this was a minor one.

By financen | November 22, 2007 - 2:56 am - Posted in Stock Market

Stock market falls in front of Thanksgiving Day about the worries of Mortgage Market and the high oil price. Wall Street restarted its journey on Wednesday because of the dropping mortgage market. Dow Jones Industrial average and S&P both fell by more than 1.5 percent, Dow Jones index dropped by 210 points and ends up at 12,799.04. S$P dropped by 22.93 and ends up at 1.416.77. And the Nasdaq index down by 34.66 or 1.33 percent and finished at 2,562.15.

The stock market is in negative mood for the year because of the decline in the S&P index. Many investment policies and the value of the mutual fund is dependent on S&P. The investors are shifting to the Govemment securities for safety. For the first time since 2005 the yield of Treasury’s 10-year note dropped by 4 percent. The stock market has been dropping for several days because the investors are gauging about the reaction of the companies after the slowness in the U.S. mortgage and housing market. People worried about the recent credit market and the increasing price of oil, the oil price has raised to $99 a barrel.

By financen | November 2, 2007 - 7:57 am - Posted in Stock Market

In the last five months, October has added most number of jobs for U.S. economy. Despite of this good news in the job market, stock markets were still in the swing to the downward. Dow Jones Industrial Average was down 2.6% or 362 points on Thursday, and today at 12.45 p.m. ET, was also down by 36 points to 13,531. Although Nasdaq was up by 1 point at 2,796.

Want to know more about this news? Visit this article.

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