Deals happen when the right pieces—and right price tags—fall into place. And as 2021 comes to a close, it looks as though the pieces and prices are coming together for quite a few companies.
A flurry of mergers and acquisitions have been reported by rubber industry companies in recent weeks, and, according to a pair of economic experts, it's likely to continue through the end of the year.
Bill Wood, founder of Greenfield, Mass.-based Mountaintop Economics & Research Inc., cautions against looking too deeply into trends behind the M&As and making too many connections to the COVID-19 pandemic. Sometimes, the uptick in M&A activity is just that, an uptick.
"What is causing all the M&As? The fact that there is a lot of M&As," Wood said. "It can be a self-fulfilling prophecy."
And that could be the case right now as favorable market trends and an influx of capital influence buying and selling decisions. It's all part of an economic cycle that creates ideal moments for M&A.