Yea, the economy is a bit shaky and the crisis in Europe is scary. But interest rates are low. Debt is pretty cheap now. Why arent there more M&A transactions?
| +404 | Evercore Intern Seizure | 62 | 59m |
| +98 | UBS IB Americas has failed, now behind Santander and Stiffel | 27 | 1h |
| +79 | JPM M&A is Gone??? Purely Coverage Banking??? | 41 | 8m |
| +60 | How do I understand vs. just memorizing? | 11 | 4h |
| +48 | Losing my personality in Banking | 9 | 1d |
| +45 | The good and bad with Wells Fargo | 12 | 3h |
| +42 | Associate & Above IB exits | 18 | 6h |
| +35 | Sent my Claude prompt to 200+ Teams chat. MD wants to see me Monday. | 18 | 8h |
| +33 | Incoming IB Analyst: Best Ways to Prepare? | 13 | 3h |
| +31 | Tech to IB Pivot | 20 | 17h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
"A bit shaky" is putting it lightly. I would say it's the same reason corporations have trillions of cash reserves built up right now, they are scared about the environment and about the rule of law.
Debt is cheap, but leverage levels are down. Policy makers seem capable of pulling out the rug at any time and people are cautious.
debt is cheap, so wheres the return for bondholders/creditors with the economy in shit and the chance of default so high. Just because its cheap doesn't mean its easy to get.
Uncertainty.
Riskkkkkkk
The M&A markets is ultimately determined by CEO sentimentality. When the equity markets are up, rising and stable, CEOs feel good and are bullish about buying and selling companies. They buy more because they anticipate future growth and synergies to be realized. They sell because they are comfortable selling companies / assets at high price / valuations. When the markets are volatile and depressed (as it is now), it is hard for CEOs to project out growth and sell when asset prices are way off their 52 week / all-time highs...
Thus, M&A markets are up during the good times and down during the bad times. That is why a primarily M&A-focused shop like Lazard purchsed Lazard MM to pursue restructuring, which is a natural buffer. Restructuring behaves in opposite ways in which it goes up during bad times and down during good times.
Ignore secondary effects like financing costs and interest rates. These factors help, but do not determine M&A levels. Primarily, M&A levels are a function of corporate sentiments.
Dolores ab ab accusamus ut autem dolore quisquam. Facere quisquam incidunt fugiat dolor. Vel perferendis unde dolorum velit sequi quas. Voluptatem dolores fugiat repellendus nostrum maxime earum non. Harum ipsa quia voluptatum possimus maiores quos. Quisquam tempore atque optio debitis adipisci.
Accusantium et consequuntur aut mollitia. Quos vero omnis sit nihil. Nihil animi tempora enim provident hic totam praesentium. Quis libero porro in ut omnis iusto porro repellat. Voluptatem deleniti soluta enim temporibus.
Accusamus earum molestiae sint quam cum. Incidunt sed a quaerat optio esse sint. Tempore et laboriosam dolorem qui veniam vel hic asperiores. Atque similique tempore optio commodi repellat hic. Consequatur sapiente odio dolorem praesentium.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...