Merger & Acquisition Madness

According to the South Florida CEO, the merger and acquisitions market is booming throughout South Florida.  The industries seeing the largest number of deals are the financial service sector, the media industry, health care, real estate and construction.  

The flurry of deal making has increased the amount of litigation involving private equity, according to attorney Jason Oletsky.  He has worked with many cases involving private equity firms, from private equity firms suing former owners of their newly acquired companies to liability suits against the private equity firms.  Jason said a private equity firm may become liable when they make decisions that affect their companies' operations without the necessary corporate governance. 

There are many obstacles that must be overcome to complete a successful merger, but that hasn’t slowed the deals being made in South Florida.  The low cost of capital and large supply of entrepreneurs and family owned business have created a strong market for mergers and acquisitions.  According to the South Florida CEO, 50 to 80 percent of mergers fail, but as long as interest rates are low mergers and acquisitions will continue.