First quarter business mergers lowest since 2003

On Behalf of Dunlap Fiore, LLC |

Louisiana residents may be interested to learn that the rate of business mergers and acquisitions to this point in year is the slowest it’s been since 2003, according to a recent report from Thompson Reuters. Business law analysts still maintain that they believe this year’s total merger rate will surpass last year’s, but it appears that overall concern about the well-being of the US economy coupled with the ongoing economic crisis that is affecting Europe may be affecting the level of merger and acquisition activity.

Not everyone is that pessimistic about the prospects for growth in the coming economic quarters. One positive sign is a rebounding stock market, which has been a good indicator for increased activity in mergers and acquisitions. It remains to be seen, however, whether the number of mergers will pick up in the coming months. A clear uptick in mergers and acquisitions would certainly signal a marked improvement in the confidence level of many and may lead to more business investment in the economy down the road.

Business law practitioners are skilled at crafting successful mergers and acquisitions. For anyone contemplating a merger or acquisition, it is important to weigh carefully the pros and cons of such an important decision. These transactions can be very complex and involve many intricate details.

On the other hand, a successful merger administered correctly can signify a significant change in the value of a corporation and is usually beneficial to everyone involved. That is why it is essential to have the expertise of an experienced business law attorney when considering an acquisition or merger.

It will be interesting to see how businesses will react to the conflicting news about the economy as they determine whether to initiate more mergers and acquisitions in the coming months.

Source: “DEALBOOK; Mergers Slowed to a Snail’s Pace in the Quarter, the Fewest Since 2003” Michael J. De La Merced, April 2, 2013