Roger Altman Finds M&A 'Still Ticking Along Very Nicely'

The video discusses the current state of the M&A market, highlighting that while M&A activity is down from 2016, it remains strong due to factors like low interest rates and credit availability. The discussion covers the impact of these economic conditions on cash deals and the drive for earnings growth through synergies. It also explores sector-specific M&A activity, noting that tech, healthcare, and energy are particularly active sectors. The video concludes with an outlook on future M&A trends.

What are some of the factors contributing to strong M&A volumes despite a decline from 2016?

• Lack of business confidence

• Decreasing equity prices

• Ultra low interest rates and robust credit availability

• High unemployment rates

Why are cash deals considered attractive in the current economic environment?

• Due to the negligible cost of cash

• Due to high interest rates

• Because they require no strategic planning

• Because they are always risk-free

What is one reason companies are pursuing M&A for earnings growth?

• Due to weak organic growth and an earnings recession

• To increase their debt levels

• To reduce their workforce

• To avoid competition

What is a common characteristic of strategic combinations in M&A?

• They always lead to increased revenue

• They are usually short-term partnerships

• They are primarily focused on expanding the workforce

• They often involve cost reductions or synergies

Which sectors are predicted to be the most active in M&A over the next six months?

• Automotive, textiles, and mining

• Technology, healthcare, and energy

• Real estate, agriculture, and retail

• Banking, insurance, and tourism