EY U.S. CEO Says Get Ready for More Deal Action
After a slow start to the year, deals are back. Just in the past week AT&T (NYSE:T) - Time Warner (NYSE:TWX), Rockwell Collins (NYSE:COL)-B/E Areospace (NASDAQ:BEAV) and TD Ameritrade (NASDAQ:AMTD)-Scottrade Financial have announced a combined $95 billion in tie-ups.
According to Dealogic, M&A involving a U.S. company has reached $1.57 trillion year-to-date and the value of deals hit $274.4 billion in October.
During an interview on the FOX Business Network’s Mornings with Maria EY U.S. CEO Steve Howe said the deal making environment will get even hotter.
“There’s more to come is what we are hearing. The pipeline is pretty solid, of course there is uncertainty, even with the large deals, a lot of discussion will they get approved? But we are going to see more of this action,” he said.
Even though M&A activity is generally seen as positive sign for the economy, Howe says it doesn’t necessarily mean the economy is getting better and he explained why it’s good for M&A.
“The economy continues to be a challenge. They have to get after growth, profits, find customers, build new capabilities and it’s the best route to go,” he said.
The U.S. economy grew just 1.4% in the 2Q. On Friday, investors will get a fresh read with 3Q GDP which is expected to show a 2.5% rise, according to economists.