Mergers and acquisitions has become an important approach in this economic climate, with investors rewarding companies that are willing to be "bold and make transformational moves," Blair Effron, co-founder of Centerview Partners, told CNBC Thursday.
"Organic growth is hard to come by. So if you are a company that is good at making acquisitions, if you can integrate well and if you can convince the market that you can get short-term strong financial return and long-term strategic return, you'll get the support," Effron said.
"When you think in that mind-set, M&A becomes an important strategy," added Effron.
M&A activity is at its highest level since 2008. Year-to-date, M&A is up 28 percent globally over this time last year with the telecom sector leading followed by real estate and finance.
"Bigger companies obviously have a lot of cash on their balance sheets ($3 trillion or more) and you also have a willingness among companies to figure out in a slow-growth environment what can we do differently to create value," he said.
But certain deals will be under scrutiny, such as Thursday's announcement of Express Script's deal to acquire Medco Health Solutions for roughly $29 billion and AT&T's proposal to buy T-Mobile USA earlier this year for $39 billion.
These two data points "will be the signal for the rest of the business community," Effron said. "It's going to take a long time if it happens."
Also, the idea that many stocks of acquiring companies are going up upon an announcement is unusual, and "something you wouldn't have seen a few years ago," he concluded.
Effron advised Gillette on its mega $57 billion sale to Procter & Gamble in 2005, which is ranked as the second-largest consumer products deal on record and represented an 18 percent premium to Gillette shareholders.
In addition, he has advised a range of Fortune 500 and multinational companies and executed over $450 billion in transactions,includingBelgium-based InBev's $52 billion acquisition of Anheuser-Busch in 2008.
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