U.S. M&A: Full Speed Ahead for 2019

Optimism is the name of the game for the U.S. M&A market. A recent report by Deloitte cites positive tax reform, a relaxed regulatory climate and growing cash reserves as the primary reasons for expecting 2019 to be a big year for M&A. 79% of the 1,000 U.S. corporate executives and private equity firms surveyed said their organizations will close more deals in 2019 than 2018. 70% of the respondents also expect the aggregate value of deals closed to exceed 2018, with over half of deals expected to be between $500 million and $10 billion. Interestingly, divestitures are expected to make up a critical component of overall M&A activity for 2019. 81% of respondents said they will sell units or portfolio companies in 2019, up from 70% last year. Corporations cited financing needs, change in strategy, and unneeded technology as the main reasons for future divestment. On the other hand, private equity firms primarily expect their divestments to be strategic sales. The…

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