New York, NY, September 03, 2013 --(PR.com
)-- After a steady, but unspectacular first half of 2013, New York mergers & acquisitions specialist Colin Smith believes we will see a dramatic expansion in activity in the final quarter of 2013.
“All the major players are sitting on huge piles of money,” pointed out Smith. “They are just waiting for the right time to start spending.”
Smith is confident that time is almost upon us. Growth in the American economy is consolidating, Britain’s economy appears to have gained some momentum and even the Eurozone is showing signs of life.
Even the apparent slowdown in China, India, Australia and Brazil is not all bad news as far as Colin Smith is concerned because it may lead to certain acquisition targets in those countries becoming slightly cheaper and their owners may be more amenable to deals they might not have considered when it was their part of the world enjoying stronger economic growth.
“We are entering a new phase in money movements away from the so-called BRICS back to developed markets and some of that excess liquidity will be spent on a new round of mergers and acquisitions,” said Smith.
The New York-based attorney added, this shift coincided with strong signals from the US Federal Reserve that it was about to begin tapering off its quantitative easing program also in the final quarter of 2013. He identified energy, pharmaceutical/medical technology and agro-industrial companies as target industries for the next 12-18 months.
“Most investors are not confident enough just yet in the economic recovery to bet on retailing firms and the domestic consumption they rely on,” explained Smith. “Instead, they are looking at industries that can benefit from the economy as it is right now. Energy firms stand to gain from rising global demand, any company that boosts food production and/or lowers costs is always going to be of interest and healthcare reform, such as Obamacare and changes to Britain’s National Health Service, means any company that can create savings in healthcare is going to receive a lot of attention.”
Colin Smith went on to state that while the mergers and acquisitions of multinational corporations tend to capture most of the news headlines, the dealings of smaller cap companies are much more beneficial to the economy as a whole.
"We take it for granted these days that when one multinational acquires another, the first thing the buyer does is lay off workers," commented Smith. "This is because at that end of the scale, the acquisitions are all about optimizing profits by saving costs."
The Law Office of Colin Smith focuses on mergers and acquisitions of smaller firms and Smith is adamant his sector of the market is a force for good.
"Typically, when a small company acquires another, it is because the company wants to expand by selling more of what they already provide, or more products or they want to penetrate new markets," he explained. "This usually leads to job creation over the long term, instead of the ruthless downsizing you see when one giant takes over another. Our commitment to this niche market of small cap takeovers is as strong as ever and we are confident the rest of 2013 and 2014 will see the completion of several acquisitions that will add value to investors and the economy as a whole."