JPMorgan's Aiyengar: 2021 M&A Is What Dreams Are Made of

The transcript discusses the trends and factors driving M&A activity, highlighting the increase in medium-sized deals and the role of innovation and technology. Despite unfavorable conditions like the pandemic, companies are pursuing growth through M&A due to investor demand and cash availability. The discussion also contrasts M&A with public market trends, emphasizing private company activity and strategic priorities.

What has been the trend in M&A deals this year?

• Increase in large deals

• Decrease in medium-sized deals

• Increase in medium-sized deals

• Decrease in large deals

Why is there high M&A activity despite an unfavorable environment?

• Low public market prices

• Need for innovation and technology

• Lack of investor interest

• Decrease in cash availability

What has been a significant factor in driving M&A activity this year?

• Record cash generation

• Decline in investor demand

• Increase in tax benefits

• Decrease in cash reserves

What is a key driver of the M&A market compared to retail and public markets?

• Retail investor trends

• Public company activity

• Private company activity

• Stock market volatility

How do public company boards approach growth in the M&A market?

• Focus on short-term stock prices

• Emphasize strategic growth

• Avoid technology investments

• Rely on retail investor trends

How does market volatility affect M&A decisions?

• It encourages more buybacks

• It affects psychological confidence

• It has no impact

• It leads to fewer deals

What shift has occurred in M&A strategies due to time constraints?

• From buying to building

• From building to buying

• From innovation to stagnation

• From rapid to slow integration