Goldman's Feldgoise Sees Strong M&A Market Pushing into 2021

The transcript discusses the impact of the pandemic on M&A, highlighting changes in risk perspectives, investor attitudes, and market dynamics. It explores the recent surge in M&A activity, driven by strong equity and debt markets, and the role of virtual interactions in deal-making. The future of M&A and banking models, including decentralization and the importance of in-person interactions, is also examined.

How has the pandemic influenced the perspective of CEOs and boards on M&A?

• It has decreased their interest in vertical mergers.

• It has led them to prioritize supply chain integration.

• It has made them focus more on geographical expansion.

• It has increased their focus on product line expansion.

What is one of the main drivers of the recent boom in M&A activity?

• High levels of CEO confidence

• Lack of debt market support

• Weak equity markets

• Decreased bank lending

What trend is observed among sellers in the M&A market during the pandemic?

• A decrease in stock deals

• A decline in activist investor activity

• An increase in cash-only transactions

• A rise in stock deals

How has the advisory part of M&A deals changed during the pandemic?

• It has become more reliant on in-person meetings.

• It has seen a decrease in transaction numbers.

• It has shifted to virtual interactions.

• It has extended the timeline for deals.

What is a significant change in the banking model discussed in the final section?

• Elimination of the apprenticeship model

• Increased focus on in-office work

• Decentralization allowing remote work

• Centralization of all banking operations

What is the expected future of client meetings in M&A practices?

• They will be entirely virtual.

• They will be eliminated altogether.

• They will return to pre-pandemic norms.

• They will be a mix of virtual and in-person.

How do companies typically respond to changes in administration regarding M&A?

• They halt all M&A activities.

• They increase hostile takeovers.

• They adapt to new regulatory constructs.

• They focus solely on domestic deals.