Mega-Mergers Making a Comeback

Are we entering a new golden age of giant deals? In the past week, we’ve seen buyouts struck for computer giant Dell ($24 billion), the merger of American Airlines and US Airways, and now Warren Buffett’s $28 billion purchase of Heinz (with the assistance of a Brazilian private-equity firm.) Cheap money, big investors with lots of cash, and concerns about growth are propelling the upsurge in big-ticket deals. John A. Bick, a partner at the firm that helped advise Buffett on his Heinz deal, points to restored confidence in the market as the reason for the return. “When we talk to our corporate clients as well as the bankers, we keep hearing them talk about increased confidence,” says Bick.