Paul Martin's Business Update - April 3rd, 2014

Paul Martin's Business Update - April 3rd, 2014

Doing deals.

That’s a segment of the economy that provides fodder for Hollywood to make movies about moguls buying and selling businesses over cigars and cognac but it is not something we tend to see in everyday life. Sometimes called M & A or mergers and acquisitions, this part of the economy is vital for investors looking to turn a stockholding into cash. This is especially true for small or mid-sized businesses whose owners are looking to exit or retire.

But, even though this isn’t showing up in everyday coffee row talk, it is active and probably going to get even more so, says a report from the economists at CIBC World Markets. They note that in the post-recession era businesses, particularly the big ones, who are always on the lookout for an acquisition have been amassing cash.

The report says there’s about $4 trillion in free cash around the world looking for a home and the most attractive place to find an acquisition target in the energy patch is in the Bakken play in Saskatchewan.

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