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Three Sectors That Will See the Most Deals in 2013

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  • Description

    Privco CEO Sam Hamadeh gives his outlook for mergers and acquisitions.

  • Duration 3:27
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-- -- America and it US Airways deciding to march Comcast snaps up the rest of NBC universal Linden RD and -- -- Buffett.

Gobbles up -- The big deal is back so where will the next action happens Sam -- modest.

Is the CEO -- -- private company financial intelligence and good to see and why isn't Pat -- is happening first inform us.

Well boy American companies are hungry -- -- the Vytorin gobbling up companies at a pace that we haven't seen.

Why that's happening there's really -- main reasons to one main reason is American companies have never had this much cash burning -- -- pocket.

In fact.

Due in 2012 was a record year with over one point seven trillion dollars in cash.

From the non bank financial non -- corporations in the US.

That is a new record and remember we have companies like Berkshire Hathaway that have some seventy billion of apple of course is famous -- 130 billion.

There is a lot of cash burning a -- in their pockets so.

But it but without much cash in with interest rates as low as they are yet.

Why are companies doing things are stupid with their minds because well -- It's certainly warm Buffett knows more than I about investing because they paid 19% above the all time high for that stock.

-- mean raises the issue of whether these -- point the these are going to be good for the buyer you know odd compared to viewers to like buying a house where interest rates are so low and banks -- except 0% down 5%.

Yes of course inflates and that there is a danger.

That because they have so much money earning 0% in the bank and you can borrow still more money gets the record low junk -- rates that they do something stupid -- their money.

So far we haven't seen anything crazy Comcast buying at NBC makes sense.

-- exit plan to do it just did earlier exactly where do you think the real activity will be in the coming months even in the next year -- In terms of sectors it every health care is -- going to be more food companies where.

We think it's gonna be three primary sectors number one you can see a lot of pharma health care they have a lot of cash in the bank and particularly.

You see big global Biopharma companies that have a lot of patent expiration date so we think frankly we have to guess.

And -- thirteen the most active acquirer for farmer will be colossal GlaxoSmithKline.

They've already done -- customs you know three billion dollar plus valuation last few weeks what other areas.

I second big area code is gonna be media we've already seen that NBC universal by the way Virgin Media just acquired for 24 billion dollars by Liberty Media.

Media's -- -- be second and third is going to be technology which by the way traditionally.

Have not been very active buyers been proposed most recent tech -- report.

We've seen the top ten most active buyers of private tech companies the US number one -- but whoever would have guessed.

Number four Twitter number three Groupon so all the sudden obviously in dollar volume side as the number of -- those.

And -- group and some of these small deals that say FaceBook is doing they're doing it just for the talent.

Because it's so difficult to hide that they'll snap up some of these is that quite hurtful -- an.

-- what -- -- cocoa tobacco higher yeah yesterday acquisitions to shut down the company has essentially take themselves in time again yes that's the job market you wanna -- and Sam thank you so much it was good good to see -- -- and a Monday he's CEO Africa.

And.

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