What is merger & acquisition (M&A)?

Merger and acquisition [M&A] have always been central to WSP’s growth strategy. The purpose of M&A is to extend its market reach and its offerings. Throughout the years, WSP has demonstrated a track record of successful acquisitions. In 2023, WSP acquired a few companies, such as IGT, Calibre, BG Consulting Engineers, and Enstruct.

Will costar's merger deal go through in 2024?

CoStar management believes the deal will go through before the end of 2024, but it still needs to pass shareholder and regulatory hurdles. As a result, the proposed acquisition creates an opportunity known as merger arbitrage -- a short-term investing strategy where you buy stocks of companies trading below their acquisition prices.

Is merger arbitrage suitable for your investing style?

As for whether merger arbitrage is suitable for your investing style, frequent participator Warren Buffett offered the questions investors should ask themselves in his 1988 annual shareholder letter: To evaluate arbitrage situations, you must answer four questions: (1) How likely is it that the promised event will indeed occur?