Texas has seen a lot of economic growth recently, but there is more going on in the state than the rise of new businesses. As pointed out by a recent article on The Dallas Morning News, merger activity in the state is at a 10-year high.
According to the news source, Texas-based companies announced a total of 255 mergers, acquisitions, joint ventures and divestitures during the first half of this year. This is 30 percent higher than the number recorded in 2013 and serves as a sign that businesses feel comfortable purchasing assets that are important to their core business. In fact, the number could be even higher when taking into account Texas-based businesses that are merging with companies located out of state.
"The M&A boom is definitely back, and it looks like it has legs that could be sustained for a while," Ken Menges, managing partner of Akin Gump Straus Hauer & Feld's Dallas office, told the news source. "The pipeline of new deals not yet announced appears to be quite robust."
This is affecting numerous industries, including the energy industry, which has experienced significant growth in Texas. In fact, the news source added that 75 percent of the 255 mergers occurred in this industry. Of course, there may very well have been additional mergers involving foreign energy companies.
Before a merger can take place, it is important to consider any environmental concerns that are relevant to a particular project. An environmental consultant can perform a site assessment that can reveal potential concerns that may hold up the deal.