Mergers and Acquisitions Constructive Now: Holland

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July 30 (Bloomberg) -- Holland & Co. Chairman Michael Holland discusses mergers and acquisitions as a use of cash on “Bloomberg Surveillance.” (Source: Bloomberg)

This is bloomberg surveillance.

Michael holland is with us.

What about mergers and it positions as a use of cash.

It was all the rage in 2013. is that a good use of raising cash?

You have heard the expression it is cheaper to drill for oil on the new york stock exchange that it is to go out to the real fields.

The private market value of a lot of these companies is substantially above where we are in the public microplate -- public marketplace.

The answer is, yes.

But with all of this cheap money we've got out there, can you try to gain the system, guess who would be next?

You would have to be the companies that are smart.

The companies that are buying smart are growing faster than you would expect.

This is a constructive thing at this point in the cycle.

At the point in which it becomes the structure -- destructive is good for the acquirer as well as the inquiries -- acquirees.

One of the wonderful things about the current reporting timeframe is not only three quarters of the companies reporting and beating, but the revenues are up two thirds.

That has not been the case in the previous quarters.

We are getting a lot of revenue growth and a little bit of constructive stuff going on in the u.s. economy.

And china, a very big deal in china.

We will talk about china later.

Full circle, this is part of the frenzy to gather revenues?

A smart way to do it.

And the answer is, yes.

Michael holland, dovetailing all of these different uses of cash.

They come up betty liu and i will -- coming up next sunday,

This text has been automatically generated. It may not be 100% accurate.

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