PwC Sees M&A Decoupling From U.S. Economy in 2019

The video discusses the current market conditions, highlighting the abundance of capital and market volatility. It examines the challenges in the credit market, particularly in high yield and leveraged loans. The discussion moves to the decoupling of M&A activities from economic trends, despite uncertainty being a major factor. The impact of digital disruption and the importance of transformational deals are also covered. Finally, the video identifies growth sectors such as healthcare, financial services, and technology, emphasizing recession-proof industries and distressed activity.

What is one reason for the current market volatility?

• High levels of corporate liquidity

• Decreasing interest rates

• Lack of capital

• Stable asset prices

How has uncertainty affected M&A activity over the past decade?

• It has only affected small-scale deals.

• It has completely halted M&A activity.

• It has driven an increase in transaction activity.

• It has led to a decrease in transaction volumes.

What percentage of corporate deals crossed industry lines last year?

• 10%

• 20%

• 30%

• 40%

Which sector is expected to continue seeing transaction activity in 2019?

• Automotive

• Healthcare

• Retail

• Construction

What type of industries are considered recession-proof?

• Luxury goods

• Start-ups

• Recession-proof industries

• Emerging markets