Merger Monday not yet ready to take over but expect M&A headlines in certain areas

M&A activity should increase but not everywhere

M&A (Mergers & Acquisition) activity had fallen to well-below the 10Y average over the last 2 years. There are various reasons for this slowdown, including higher rates and negative corporate sentiment. But between equity markets faring well over the last year and interest rates off highs, there are some reasons to expect a recovery. Indeed, we've seen a bit of an uptick. We speak with Jill Hall who points out that SMID cap valuations are inexpensive relative to large caps-another M&A positive. But Jill believes that M&A will be focused in certain parts of the market. Bryan Spillane and Peter Galbo say consumer staples companies with healthy balance sheets could engage in M&A as it becomes difficult to push price further and these companies seek other ways to grow. EB Poonawala suggests that banks could benefit from both higher M&A fees and what could be an uptick in bank mergers, especially if there's political change in November.

 

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