Mergers & Acquistions Boom

CPA2Biz News & Articles notes a boom in middle-market acquisitions. There was nearly a doubling of activity in 2004, and a continued increase is expected this year.

This offers opportunities for CPA firms that offer M&A services or are considering them.

The reasons for the new activity include:

• Companies have a lot of cash.
• Interest rates are low.
• Private equity firms are acquiring companies that survived the recession and are now more efficient than before.
• Sellers are reemerging because they feel the time is right. The number of entrepreneurs approaching retirement age is increasing.
• The capital gains tax is low.

For more, see:

http://www.cpa2biz.com/News/Telberg/What+the+New+MA+Boom+Means+to+You.htm