Goldman Sachs Sees a "Perfect Storm" for M&A

In a report out today, Goldman Sachs said they see a "perfect storm' for mergers and acquisitions.

The firm said more benign and accommodative capital markets should provide a solid underpinning for M&A activity, and "a combination of rising global GDP, improving equity sentiment and CEO confidence augur a significant pickup in M&A into 2010."

Financials companies which offer the most leverage to the M&A cycle include: Lazard (NYSE: LAZ) (Conviction Buy), Blackstone (NYSE: BX) (Conviction Buy), Evercore (NYSE: EVR), and Greenhill (NYSE: GHL).

Companies viewed by Goldman analysts as among the highest potential M&A candidates:

• Devon Energy Corp. (NYSE: DVN)
  
• AK Steel Holding (NYSE: AKS)
  
• Edwards Lifesciences Corp. (NYSE: EW)
  
• WellCare Health Plans, Inc. (NYSE: WCG)
  
• Health Net, Inc. (NYSE: HNT)
  
• Brocade Communications (Nasdaq: BRCD)
  
• Heartland Payment Systems, Inc. (NYSE: HPY)
  
• Amdocs Limited (NYSE: DOX)
  
• TIBCO Software Inc. (Nasdaq: TIBX)
  
• Citrix Systems Inc. (Nasdaq: CTXS)
  
• Red Hat, Inc. (NYSE: RHT)
  
• CommVault Systems, Inc. (Nasdaq: CVLT)
  
• SuccessFactors, Inc. (Nasdaq: SFSF)
  
• Leap Wireless International, Inc. (Nasdaq: LEAP)

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