M&A as Indicator of Economy Turn Around
By Jason Hines on December 18, 2009
In the WSJ Wednesday last week it said “The Deal Mounts a Comeback”, and we can read that “If recent history is any guide, a rebound in M&A also is evidence the broader economy has begun to heal”
They publish a very compelling graph on this:
Since we harvest a structured event type that is Acquisitions we can in real time study the rate of change of number of Acquisitions taking place globally, see below. Ignore the absolute numbers, view this as mostly interesting in its derivative – and also ignore that the graph is somewhat crude – then we can clearly see a pick up in M&A activity across the year. Focus on the rolling 60-day average to avoid the daily and weekly number.
We may also want to compare this to the raising trend of IPOs across the year.
Perhaps a small indication of things turning around!