Citigroup's Shafir on the State of the M&A Market

The transcript discusses the impact of the Huawei executive's arrest on markets, highlighting the trend-oriented nature of the M&A community. It explores optimism in the M&A market, noting significant deals in 2018 and expectations for 2019. The discussion shifts to private equity's response to market sell-offs, emphasizing the abundance of dry powder and potential pricing impacts. Finally, it addresses the regulatory environment's challenges and anticipates future deals, particularly in the tech sector, while considering the influence of tech disruption and activism on M&A activities.

What was the general impact of the Huawei executive's arrest on the M&A community?

• It caused a major disruption.

• It had a limited impact.

• It led to increased M&A activity.

• It resulted in a market crash.

What is the main reason for optimism in the US market according to the transcript?

• Increased government spending.

• A booming tech industry.

• A strong economy.

• High interest rates.

What trend is observed in the types of M&A deals being made?

• A focus on small-scale transactions.

• A decrease in tech-related deals.

• A shift from logical to more innovative deals.

• An increase in government-backed deals.

How does private equity view the recent market sell-off?

• As a major threat.

• As an opportunity.

• As irrelevant.

• As a sign of stability.

What is a significant factor driving the potential for more divestitures?

• Increased competition.

• Government regulations.

• Tech disruption and activism.

• Economic recession.

What is the expected role of tech in future M&A activities?

• Tech will face significant regulatory hurdles.

• Tech will play a minor role.

• Tech will continue to be a major driver.

• Tech will be replaced by traditional industries.

What is the current regulatory environment in the US described as?

• Completely unpredictable.

• Unchanged from previous years.

• More challenging than before.

• Less challenging than before.