Rainmakers See No Signal of a Slowdown in M&A: Offers Summit Replace

0
191

Ken Moelis says that five-day weeks in the post-pandemic world may not be the norm for everyone and that he lets people decide what is best for them.

Although the veteran dealmaker claims the office is a good place for creativity to flourish, he acknowledged that moving to flexible work is also a generation change, and some of the company’s younger executives will be all for it. Moelis said he won’t force his approach on his customers either.

The CEO of the investment bank Moelis & Co. also compared the market for meme shares with games of chance. A lot of people don’t make an investment decision, they make an emotional one, he said.

“You are in a global craps game where everyone is talking and having a lot of fun,” said Moelis.

Click here to watch the Bloomberg Deals Summit live.

Expect a rush for business ahead of tax changes

Corporations could hurry before President Joe Biden’s US administration proposes changes to capital gains taxes, says Michal Katz, head of investment and corporate banking at Mizuho Financial Group Inc.

Some major shareholders of companies that may have been considering a sale might tell themselves it’s better to do so sooner rather than later, says Scott Barshay, chairman of the corporate division of law firm Paul Weiss Rifkind Wharton & Garrison.

EQT’s Barshay, Katz and Marc Brown agreed that the market for specialty acquisition companies will persist, although Barshay sees a slight slowdown in deals and a flight towards quality after a hectic start. There will be fewer transactions with smaller companies that have not yet built a convincing business case.

“I think you will see fewer deals that really have no cash flow and no deal yet,” said Barshay. Instead, there will be “predominantly good, strong companies that use SPACs to go public”.

No Signs of Dealmaking Slowing Down: Paul Weiss’s Barshay

Dealmaking is rife across the board, says Barshay. Technology and health deals spurred an immediate rebound in global mergers and acquisitions from the middle of last year, and now the industrial, financial services and consumer goods sectors are all catching up, he said.

Significantly, there are no distressed deals, says Barshay. All of this is fueled by a simple credit and bond market where funding is almost free. Barshay doesn’t see a slowdown unless there’s a big change in macroeconomic history.

Rainmakers discuss the record market for M&A, capital market innovation in 2021

Dealmaking is booming, with more than $ 2 trillion in deals announced so far in 2021 as big buyers leave the pandemic slowdown behind and blank check companies hit their goals.

At the same time, companies have raised more than $ 140 billion in initial public offerings as part of the largest going public since 2010, with SPACs not far behind. New unicorns are minted almost daily as U.S. startup funding hits record highs and CEO confidence – a crucial catalyst for transactions – rises.

Set against the backdrop of one of the most exciting years in deal history, the Bloomberg Deals Summit invites top dealmakers, CEOs, investors, and insiders to share their insights into the landscape and discuss whether this historic boom is likely to continue.