Why Mergers and Acquisitions in 2019?
This group seems to get a lot of recognition on this forum even in recent threads. Whenever someone asks "Which groups should I work in at bank XYZ?", Mergers and Acquisitions is sure to show up. Just curious why there is so much hype with this group in current times (2019).
I think the main reason behind this is that people want to be building deal experience, and M&A deal experience has a wider range of applicability than equity issuance or debt issuance.
Thus, if one works in an M&A team, they can get experience doing lots of acquisition modelling which will help them in PE/VC/Corp Dev etc.
Coverage teams won’t go into the same level of detail on M&A deals but one also gathers skills in looking into industry trends etc.
Probably the same reason as it was in 2018.
Probably the same reason as it was in 1998
Ahhh thought this was of a more in general thing than specifically now.
To elaborate on the question, I think these days there’s much more large institutional money that’s willing to invest privately compared to the public markets, especially with the growth of huge tech conglomerates who are providing the main exit mechanism for a lot of startups. Because of this, as well as a lot of cost cutting and consolidation as compared to growth, you are seeing relative health in the M&A industry compared to ECM which is losing a lot of the mid market names you used to see go public.
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