The Merger Wave Recedes

The first quarter has come to an end, and what it revealed is that the merger cycle is returning to less-frenzied levels. But hold that yawn because it's not all a bore: Some interesting new trends are afoot.

For starters, it's the first time in at least 20 years that financial acquirers (e.g. private equity firms) are both making larger purchases and paying larger premiums on average than strategic acquirers (companies buying companies) are.1459442006834 This could tell us a lot about the direction in which M&A is heading. Even amid turmoil in the high-yield debt market, buyout shops are finding a way to spend some of that dry powder they've amassed. And the lumpy equity market is helping them discover opportunities as strategic mergers cool off a tad.