Mergers and acquisitions ("M&A") has been booming in February, with Dell Inc.'s (DELL) move to go private and Warren Buffett's buyout of H.J. Heinz Co. (HNZ). These deals are being driven by record corporate profits and low borrowing costs spurred by low interest rates. And despite $140 billion already inked this month, some analysts believe it could be just the beginning.
Looking ahead, many analysts are optimistic given the eurozone's recovery, election results in the U.S., and potential resolutions to the debt ceiling and fiscal cliff concerns, while consolidations can often spur more acquisitions by virtue of competition. Investors may therefore be in for a healthy season of multiple appreciation in the developed world.