Investment bankers see dealmaking lull storing pent-up demand

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NEW YORK: Some of the world’s top investment bankers said on Wednesday (Nov 8) that a drop in corporate dealmaking in 2023 sets the stage for a pick-u...

Feldgoise, co-head of global M&A for of Goldman Sachs, speaking at the Reuters NEXT Newsmaker event in New York on Wednesday. – Reuterspic

Uncertainty over the Federal Reserve raising interest rates further to fight inflation, the conflicts in the Middle East and Ukraine, concerns about a potential economic slowdown and growing hostility among antitrust regulators to big deals have all weighed on the M&A market. “You can see why some companies are saying, if I don’t have to do this deal now, maybe it is more prudent to wait,” Bank of America chairman of global M&A Steven Baronoff told the panel.

She added that companies were more willing to battle regulators in court over their deals in light of high-profile legal victories some, such as Microsoft Corp and Illumina Inc, have scored. “Litigation has moved from being an insurance policy to being a strategy,” Aiyengar said. “For the medium term, the dealmaking environment will indeed be a little bit less robust,” Jim Esposito, co-head of Goldman’s global banking and markets division, said in an interview at the Reuters NEXT conference.

The total value of M&A fell slightly to US$717.4 billion during the September quarter, according to data from Dealogic, from US$738.1 billion last year during the same period.

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