Market Sell-Off Will Lead to a 'Breather' in M&A Activity, Citi's Shafir Says

The video discusses the impact of market volatility on mergers and acquisitions (M&A), highlighting challenges in public transactions and the influence of global economic factors like China trade issues, Brexit, and an inverted yield curve. It also explores strategies for navigating a thin M&A market, emphasizing transparency with clients and focusing on actionable transactions.

What is a potential consequence of increased market volatility for M&A deals?

• Increased number of transactions

• Repricing and transaction halts

• Higher visibility for companies

• Easier deal negotiations

Why is it difficult to renegotiate public transactions?

• Market moves have a significant impact

• Public transactions are easily reversible

• Material adverse change clauses are loosely written

• There is little ability to renegotiate due to tightly written clauses

Which economic factor is mentioned as not being constructive for a robust M&A market?

• High employment rates

• Inverted yield curve

• Stable currency exchange rates

• Low inflation

What is a key strategy for navigating a thin M&A market?

• Avoiding any transactions

• Prioritizing only new clients

• Being transparent with clients

• Focusing on non-actionable transactions

What is the speaker's view on the current state of the M&A cycle?

• The cycle is irrelevant

• The cycle is still ongoing

• The cycle is at its peak

• The cycle has ended