Credit Suisse: $4.3 Trillion Of Cash Available For M&A

Credit Suisse has laid out the case for further M&A activity this week. The bank points out that ‘dry-powder’ at private equity companies and corporate cash levels still sit at record levels. While in many sectors it has now become cheap to buy capacity, rather than build it.

The bank makes the case that:

• 73% of European companies and 63% of US companies have a FCF yield above their respective corporate bond yield.
• The combined firepower from corporate cash, re-leveraging and private equity 'dry powder' is $4.2 trn, or 10% of global market cap
• M&A activity is only in line with 10-year norms and 40% below its long-run average
• In many cases, it is cheaper to buy than build: 56%, 29%...
  

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