After breaking the record for mergers and acquisitions last year, deal makers have started 2007 at an even faster pace.
With the first quarter drawing to a close, the value of corporate deals announced through Wednesday reached $1.08 trillion, according to Thomson Financial. That is 24 percent more than the value of deals in the first quarter of 2006.
The tempo has slowed from last year’s fourth quarter, when $1.2 trillion in transactions were announced. But the deal cycle is seasonal, and fourth quarters have been the busiest ones for announcements in recent years — a trend that could partly reflect a desire by investment bankers to plump up their year-end bonuses.
Many of the conditions favorable to deals remain in place, including an accommodating credit market and an abundance of well-financed private equity firms.