One sector experiencing a 'sea change' through M&A interest

Livewire Exclusive

Livewire Markets

Jeremy Bendeich from Avoca Investment Management says the current M&A cycle is likely being fueled by the availability of cheap credit – but it is also shedding light on value opportunities. With debt funding at record low levels there has been an arbitrage on offer for companies looking to make EPS accretive acquisitions funded by cheap credit. Add to this the benefit to offshore buyers from the weakening AUD along with a low growth environment – and it is easy to see why M&A has been hot. Bendeich says that while all M&A cycles come to an end, usually as credit becomes more expensive, the current interest rate environment suggests there will be more to come in this space. When it comes to identifying opportunities, Bendeich says value will be more apparent for those investors who can set a longer term investment horizon. In this video he outlines one sector where he believes the presence of M&A activity could be marking a ‘sea change’ for investor perceptions:

2 stocks mentioned

Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Please sign in to comment on this wire.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter