Moody’s: The M&A Market Is Flashing A Red Warning Sign – ValueWalk Premium

Moody’s: The M&A Market Is Flashing A Red Warning Sign

One of the most reliable indicators of a market peak is M&A. When profits near a cyclical peak, sales growth stagnates and the risk of missing earnings targets grows, managements chasing growth at any price, push takeover premiums to extremes.

Ultimately shareholders are the ones who have to pay the price when the wheels come off several years later so naturally, investors become wary when M&A volumes spike.


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