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Lender Sees 'Record-Breaking' M&A Activity Ahead

Think the surge in dealmaking in August is robust?

Activity is set to hit “record-breaking” levels in the fourth-quarter, according to Len Tannenbaum, the CEO of Fifth Street Finance, an alternative lender.

“I had thought that the flood of M&A activity would even occur a couple months ago, but of course, this is a world of Christmas shoppers where everything is always at the last minute,” Tannenbaum told CNBC. “Even given the volatility, I think people are saying, ‘Ok, this is August, I want to sell by December.’ If that’s true, I have to start that process now.”

With $175 billion takeovers announced so far this month, August is set to surpass March as the busiest month for merger and acquisition activity.

Tannenbaum pointed to a stabilizing economy, improved lending and a push to sell before Bush tax cuts expire, as key reasons behind the surge.

“It’s really being driven by sellers—not buyers,” he said. “If you’re an owner of a company, you want to sell this year. You want to capture a lower tax rate.”