WSC wrote earlier in the year about 2014 reaching record levels of mergers and acquisitions. There are increasing values trading hands as companies look to increase their return for stock holders. Revenues have been increasing as the economy becomes more healthy. Companies look to expand their market share or cash in on their valuations if a willing bidder comes forward. This is all an initial phase of the economic recovery. However, we are all witnessing an economic unlike anything before. So, the size of the mergers and acquisitions are larger than any seen in history. End of year totals for 2014 might approach a trillion dollars.
Phase II, Hiring: Companies will utilize their funds to purchase others companies and expand via market share but there are limits to growth through acquisition. The next large economic explanation will lead to increases in production activity… thus leading to hiring. Production in the United States is very specific to a high talent market place. Information technology, production management, sales and services… if you are in these fields, there should be plenty of opportunity. While technology has always been a safe bet in the employment market, their will be a widening need for skilled employees.
It look some time to get here, but the financial crisis of 2008 appears to be in the rearview mirror. Capital spending will soon be the order of the day after mergers and acquisitions run their course.
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