Geoff Wilson, Wilson Asset Management: How to make money from the M&A trend

Geoff Wilson, Wilson Asset Management: How to make money from the M&A trend. A rise in M&A activity is a positive for investors over the short term and a negative over the longer term. This is because in the short term, the upside for a shareholder of the takeover target company is usually more than 25 per cent. Over the long term, the evidence shows that acquisitions tend not to add value to the acquirer and, furthermore, the investor loses the opportunity to invest in the company that has been acquired. Depending on your individual view, if an investor wants the opportunity to invest in as many companies as possible, then takeovers, in principle, are a negative for investors. Takeover offers often lead to more offers: History shows that once a takeover bid for a company has been announced, there is a reasonable possibility that a higher offer will appear: (VIEW LINK)


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