Are Today's M&A Deals more Strategic or Financial?

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July 29 (Bloomberg) -- Bloomberg's Jeff McCracken discusses Wall Street's M&A Outlook with Tom Keene on Bloomberg Television's "Market Makers." (Source: Bloomberg)

It has a 2005 feel to it.

The interesting thing is we have had a lot of mondays like this, a lot of merger mondays a couple of months you may recall -- that came on a monday the same monday that -- the came on the same monday that a multibillion-dollar deal was announced for life technology.

We have had these big explosive deals that we pay attention to.

But we haven't had the steady flow of $1 billion or $2 billion deals.

This is a strategic idea, not so much -- there are typically companies that are the least this -- they are typically companies that are not the least bit desperate.

If you feel like you need a lifeline that lifeline does not have to be a buyer.

It can be viewed debt markets.

You can raise whatever you need to raise to pay off r&d, payback shareholders, whatever you need to do.

You and i follow this trailing on a one-year or two- year, people come out with this word synergy.

I circle it every time i see it.

"hope," "synergy," "paradigm," these are bad words.

What does this word mean to you?

I mean it -- it means job cuts.

People will lose jobs.

It is usually hr areas . do you do a deal just for synergies?

There has to be a strategic advantage.

Is that an advantage at the top line of the income statement or is it down in earnings?

It is usually down in earnings.

Given how cheaply you can borrow, you can always always be creative.

You have to have something more than just that.

We need to build up -- i need to build up operations and emerging markets.

Or i am a european company and i am too dependent on europe.

Lloyd blankfein was so unhappy.

The big boys were not in this deal this morning?

Clocks there were very few deals were you did not see goldman sachs and j.p. morgan.

All boxed out.

Ken mullis is an older ubi guy who started six years ago.

He started in $6 billion deals.

He is the only advisor to omnicom.

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


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