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Are Small-Cap Companies Ripe for Buyouts?

CNBC.com
Monday, 9 Aug 2010 | 6:03 PM ET

Does a recent raid by one big New York law firm of a team of top acquisition finance lawyers from a rival firm foreshadow a mergers and acquisitions boom?

Credit Suisse analysts have noted that cash and short-term investments as a percentage of assets and market cap is at its highest level among large corporations in the last 20 years.

Talking Numbers: Potential Buyout Candidates
Discussing the rising interest in M&A as companies go in search of potential buyout candidates, with Pankaj Patel, Credit Suisse managing director, quantitative strategy.

They go on to say that the period of easy margin expansion associated with the early part of a market recovery is over. That means companies need to look at more creative ways to increase revenue, and M&A is certainly one option.

So which companies are potential targets, and how can investors benefit from knowing?

Watch what Pankaj Patel, head of quantitative strategy research at Credit Suisse has to say in the video above. And read the Credit Suisse report he authored with other analysts.

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