Buy the leaders of tomorrow.
Mergers and acquisitions are the buzzwords all around us. Businesses seeking rapid growth in a recovering economy clearly prefer to grow inorganically. If they don’t acquire swiftly, the valuations of businesses will be much higher once the economy recovers. It makes eminent sense to buy now than to pay top dollar later. This understanding is clearly working on the minds of buyers of businesses. We will see the acquisitions spree gathering momentum in the coming months. Acquisitions made in a recovering economy will deliver big if the valuations are reasonable and if the integration is completion well before the economy starts growing again. This makes it important that the deals get down swiftly. This explains the spate of acquisitions by aggressive corporations with high growth ambitions. Investors must keep a close watch on the acquirers and pick a few of them who have the ability to integrate swiftly and grow synergistically. The rankings of players within several industry is undergoing a rapid churn. The change in the industry dynamics will reflect in the valuation of companies. The winner takes it all.
“Excuses are the nails used to build a house of failure.” — Jim Rohn