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Getting together seems to be a really good thing at least in corporate land Valeant pharmaceuticals as we told you snapping up -- -- -- in the latest eight point seven billion dollar deal.
So with company -- not record piles of cash you know Yahoo! to spot toddler.
Is -- name merger and activity behavior set to really take off -- has -- already joining me now from Boston red -- he's Raymond James investment banking vice chairman.
With some -- to step up.
The -- about -- deal.
It was widely expected was it not so that's not a surprise but.
Couple that with as I said -- Yahoo! you also have seamless some grub -- not necessarily publicly traded land but.
What's going on here are you happy with the pace that we've seen so far this year.
What I like to see I'd like to see greater pace.
I mean I think that that the media the headlines of being great because the over a billion dollar transaction is not only up about 25% verses in terms a number of deals -- where it was.
A year ago.
But the average size of those multi billion dollar transactions is running close to five billion.
Vs two and a half billion.
Last year so we're we're seeing more large deals and I think that's a reflection of the fact that.
Most of the activity is is driven by strategic acquirers and that's true.
Across across the landscape pretty much so I think the -- -- -- the environment for this for the for M and a activity is improving the private equity community is less active so far.
And I think they are hurt by it frankly stock market values you know we're seeing a lot of monetization is from private equity portfolios.
Into the public markets as through IPOs as opposed to one private equity -- summoned to a.
It's not what you're saying Fred is that some of these companies are saying wait a minute why don't I just go ahead and go public can see how I can stand on my own instead of being allowed to get snap it up by another company.
That's exactly right that's -- that's that's the competitive.
Foot for for many of these companies but by the same token if -- strategic mandate is that important.
-- I think you know this strategic -- will step up.
And pay a pay a big price I was systems involve the sale of a medical device company of all things to a Samsung.
And they paid a very aggressive price over five times revenues and they were willing to pay that.
Because Samsung is bound and determined.
To be a big player which in this particular -- just.
The complete opposite of how Warren Buffett operates heat no matter how much she wants something will only pay what he feels is a fair price we just tap on the screen.
That he and three G which is of course -- private equity outfit.
Got together 28 billion plus -- and they went in for -- but let's talk about the sectors that you expect might see more and -- they activity for the rest of the year so that.
Investors might be able to pick and -- some potential.
Well I would just say this if you look at the -- deal it's kind of interest thing you know Valiante buys bosh alone because it's a great play that an additional play in ophthalmology right -- committed to that sector.
That's sectors favored by demographics.
-- likewise they've they've built.
Quite a juggernaut in -- -- logical that -- was favored by demographics.
These global product lines will go into emerging markets China will be a very big consumer.
Of professional and consumer up from a logical type products so I think looking at health care.
And the demographic drivers will be very helpful I think I think the health care will continue to be a very active -- -- a market.
I think technology.
-- -- to be a very active -- market in part because the largest players have so much cash.
And so much of -- need.
To acquire additional organic growth vehicles that they will pay up for the Tom -- they'll pay up for the -- should it be acquired.
Those are the kind of companies.
That really can move the bottom law we can move the needle for these these big technology companies and there are not many like that I -- -- and it did I didn't putt I financial institutions.
Yeah I really help our viewers just heard what you said look for companies that favor of the aging demographic in this world that this is of really important -- -- Fred thank you for it.
-- -- is Raymond James investment banking and vice chairman great to see you Fred thank you for coming on.
Thank it was always a pleasure.
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