What's Behind the Decline in M&A Activity?

The video discusses the decline in market volume due to fewer big deals, increased regulatory scrutiny, and market volatility. It highlights the impact of legal and strategic considerations on mergers and acquisitions (M&A), with examples like the Baker Hughes Halliburton deal. The discussion also covers the current M&A cycle, comparing it to past years, and notes that while the factors driving M&A remain, companies are more cautious now.

What is one of the main reasons for the decline in transaction volumes this year?

• Higher interest rates

• Increased number of small deals

• Improved market stability

• Lack of big deals

How have regulators impacted the M&A environment this year?

• By reducing taxes on transactions

• By being less proactive

• By applying more scrutiny

• By encouraging more deals

What is a significant risk for companies if a deal does not get completed?

• Increased competition

• Higher regulatory fees

• Loss of market share

• Extended period of uncertainty

What comparison is made to assess the current M&A cycle?

• Late 2007, early 2008 financial conditions

• Late 1990s tech boom

• Early 2000s recession

• Mid-2010s economic recovery

Despite the slowdown, what factors still support M&A activity?

• Cheap borrowing rates and cash reserves

• High organic growth opportunities

• Limited financial capacity

• Strict regulatory environment