Mergers and acquisitions activity is still way down from pre-financial crisis levels, but a recent flurry of big deals suggests America's chief executives are regaining confidence in their own businesses. Recent mergers have involved strategic buys by big companies instead of the debt-fueled private equity buys seen a couple of years ago. That bodes well for a strong recovery, analysts tell the New York Times.
"This is sign that things have stabilized,” said a Credit Suisse analyst. “CEOs are beginning to say, ‘If I don’t buy it now, it’s only going to get more expensive.’" The health care and technology sectors have been leading the way in deal-making. "At the end of the day, in tough times, strong companies look to invest in their future," said Xerox's chief executive, who yesterday announced a $6.4 billion deal to buy Affilated Computer Services.