'IT'S LIKE SHOOTING FISH IN A BARREL'
As the guy in charge of the comprehensive Mergerstat database, Scott J. Adelson, managing director of Los Angeles investment bank Houlihan Lokey Howard & Zukin, gets a closer-than-usual view of trends in industry consolidation. Here's what he sees now:
ON THE CURRENT WAVE OF MERGERS
''The value of deals is off the charts. We will blow through last year's deal volume probably by the end of June. You've never had the kind of market you have today.''
IS THE MERGER MARKET OVERHEATED?
''Price-earnings multiples that are being paid are clearly rising, but not across the board.''
WILL THE DAIMLER-CHRYSLER DEAL MEAN MORE AUTO MERGERS?
''The number of players in that industry is already pretty small, so no.... The megadeals get the preponderance of the press coverage but aren't necessarily a trend.''
WHERE TO LOOK FOR TAKEOVER PLAYS
''Financial services--banking, insurance, brokerages--account for one-third of all merger and acquisition activity. It's like shooting fish in a barrel.''
WHY FOCUS ON MID-CAPS?
''Middle-size companies are at a critical point. They need to decide if they will grow by acquisitions or, if not, are they going to be able to compete?''
THE NEXT HOT INDUSTRY FOR DEALS
''Utilities. It's the same fact set [as in telecommunications], but it has not taken off at the same rate. That eventually will change.''
RELATED ITEMS
 - THE SEARCH FOR VALUE
- COVER IMAGE: Where to Invest
- STOCKS
- TABLE: Big and Cheap
- CHART: Large-Cap Stocks Lead the Way
- `I LOVE TO BUY A GROWTH VEHICLE THAT HAS BEEN BEATEN UP' (extended)
- MERGERS
- TABLE: Consolidation Plays
- `IT'S LIKE SHOOTING FISH IN A BARREL'
- TECHNOLOGY
- BIOTECH
- SHORTS
- REAL ESTATE
- GLOBAL
- BONDS
- MUTUAL-FUNDS
- 401(k)s
- INVESTOR POLL
- INSIDE WALL STREET: REEBOK
- INSIDE WALL STREET: GENERAL MILLS
- INSIDE WALL STREET: ADVANCED HEALTH
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