- Announced M&A year-to-date of $2.1T is up 37% from a year ago, and the second-busiest year ever, trailing just 2007.
- Adjusting for growth in global market valuations, however, says Goldman, and deal volume is still 15% below historical averages and 30% lower than 2007's record.
- According to Goldman, M&A cycles typically occur over five years, and with 2014 being the first year of underlying growth, it means this current uptick has another 2-3 years to go.
- The Goldman team in particular likes the stocks of boutique M&A banks such as Lazard (LAZ) and Greenhill (GHL +3.7%).
- Others to consider could be Evercore Partners (EVR +0.2%) and Moelis & Co. (MC -0.8%).
- ETFs: KCE, KBWC