Law Firms Are Knee Deep In Houston and Texas with the Sudden Surge in Merger and Acquisitions
The recent surge in mergers and acquisitions around the nation is becoming a sign of a recovering economy. With the boom in the gas and oil industry, concerns about 2012 tax laws, and the favorable rates of interest, Texas reported a near record breaking number of mergers and acquisitions. 428 deals were reported in Texas law book in 2012 which included joint ventures and spin offs, divestiture of assets, acquisitions and mergers.
Mergers and acquisitions is a good sign for the share holders and the investment bankers but what does it actually means in terms of the health of the recovering economy? Mergers and acquisitions are often a result of the change in government policies, availability of capital, or explosion of private sector innovation. Mergers and acquisitions should be promoted to strengthen the stock market as they are often a result of a strengthening stock market because high value of stocks provides resources to the companies to make the mergers.
A rise in mergers and acquisitions is good news for the Texan law firms. Since mergers and acquisitions are time consuming and complicated, more lawyers are required to ensure that the process goes smoothly. Buying a company entitles a lot of discipline and long working hours. It is not just about buying out one company rather it involves experts in environmental and labor areas with attention to a lot of other details as well.
Mergers and acquisitions have increased drastically in 2012 and 2013. This is a very encouraging trend if it continues in the coming months as well. This means that the recent rise in the stock market is a reflection of the economy’s confidence in the future profits and not just a stimulus by the central bank.
Houston is considered to be the center of the energy universe, and the energy and mining sector has the second largest market share at 21.7% with $90 billion worth of deals in the start of 2012 alone. With the second largest share, energy sector holds a very large segment in the merger and acquisition market.
Mergers and acquisitions are now easier because of the low interest rate environment. Big merger deals are not only good for the companies but they also look good for Houston.
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