• Academic research suggests equity returns are poor following crests in M&A activity, leading to concern about today’s market.
• This research does not take into account the circumstances surrounding M&A today.
• McKinsey research, based on two market-derived indexes, shows current M&A activity is creating much more value than in the prior peak.
• Until conditions change, we believe ongoing M&A activity and healthy market returns can coexist in 2007.
url=http://www.leggmason.com/funds/knowledge/mauboussin/MA_Boom.pdf]Read the complete commentary[/url]
• This research does not take into account the circumstances surrounding M&A today.
• McKinsey research, based on two market-derived indexes, shows current M&A activity is creating much more value than in the prior peak.
• Until conditions change, we believe ongoing M&A activity and healthy market returns can coexist in 2007.
url=http://www.leggmason.com/funds/knowledge/mauboussin/MA_Boom.pdf]Read the complete commentary[/url]
