95% of Takeover Deals Have This in Common

By Matthew Milner, on Wednesday, December 18, 2019

As I explained last week, we’re currently in the midst of a rare trend.

A wave of consolidation is taking place where big companies are buying smaller ones — i.e., “Mergers & Acquisitions.”

Every time this has happened in the past, investors made a fortune.

But this time around, you could make a fortune.

Let me show you exactly how.

How M&A Helps Investors Profit

To put it simply:

If you own a stake in a small company that gets acquired, you can earn big returns fast.

For example, we recently showed our readers how to claim a stake in Cruise Automation, a startup that builds software for self-driving cars.

Well, just six months after we wrote about it, Cruise was acquired by General Motors for $1 billion.

Readers who took advantage of this opportunity made a quick profit of 1,000%.

But Nothing Lasts Forever

As you learned last week, there’ve been 26,321 M&A transactions this year that add up to $2.73 trillion.

That’s why Bloomberg just wrote that we could be headed for a record.

But this trend won’t last forever.

You see, two of the underlying reasons for all these acquisitions are already fading:

  • Low interest rates help companies borrow money cheaply, and use it to pay for acquisitions. But at this point, rates have nowhere to go but up.
  • Meanwhile, when stock prices are high, companies can use their own shares instead of cash to fund their M&A activity. But many experts are forecasting a market crash — which means stock prices could plummet.

To take advantage of the current economic environment, companies realize they need to accelerate their takeover plans.

The thing is, this timing pressure creates an opportunity for investors like you…

If you can figure out which companies might get taken over, you can make big profits fast.

How to Play the M&A Mega-Trend

But how do you know which companies have the best shot of being acquired?

Perhaps surprisingly, it’s not difficult.

You see, based on data from market intelligence platform CapitalIQ, 95% of all takeovers occur in the same market:

The market for private companies.

So to put yourself in position to profit from this decade’s M&A boom, you should buy some stakes in private companies!

Here’s How We Can Help

The main reason Wayne and I started Crowdability was to help regular investors like you learn how to invest in the private markets.

Then you can get involved in trends and opportunities like the one we told you about today — and have the chance to earn life-changing returns.

And that’s why we created a number of free resources for you. For instance:

  • We created a video series that explains the basics of private market investing.
  • We wrote a special report that explains the proven process used by professionals to quickly evaluate the merits of private-market deals.
  • And we even share the “tips and tricks” used by some of the wealthiest and most successful early-stage investors in the world.

These resources are completely free…

You can find them all in the Resources section of our website »

Happy investing!

Best Regards,



If you enjoyed this article, subscribe to updates:

Sign-up today and you'll receive our daily insights on early-stage investing, as well as our FREE "Equity Crowdfunding Action Kit" – where you'll learn:

  • The Ins & Outs of Equity Crowdfunding
  • A step-by-step path to get started
  • Tips from dozens of Venture Capitalists
subscribe to updates

Thank you for subscribing!

Tags: Ma Resources

Share This:
comments powered by Disqus