If there’s anything M&A professionals dislike, it’s uncertainty. And heading into 2020, there’s more than enough uncertainty to go around, including questions about the economy, international trade, impeachment, domestic politics and more. The funny thing is, the lack of clarity may actually make the first half of the year a great time for M&A, as dealmakers push to close transactions before the looming uncertainty of Election Day and its outcome.
“Many companies will insulate themselves from this uncertainty by seeking to complete deals in the first half of 2020, before the Democratic National Convention in July,” explains Andrew Jessen, head of M&A, William Blair. “The biggest source of uncertainty is driven by who will win the Democratic nomination. If a more moderate candidate wins the nomination, volatility headed into November’s election should be relatively muted. But if a more progressive candidate wins the nomination, investors and business owners will be monitoring the campaigns very closely to see how the Democratic and Republican candidates’ proposed policies could affect specific sectors.”
To find out more about what to expect in dealmaking, Mergers & Acquisitions asked eight bankers and other advisors for their outlook on M&A in 2020:
Paul Aversano, Alvarez & Marsal
Cole Bader, Stifel
Karen Davies, Huntington National Bank
J.R. Doolos, KeyBanc Capital Markets
Andrew Jessen, William Blair
Derek Lewis, Harris Williams
Peter Lombard, Piper Jaffray & Co.
Christopher Stradling, Lincoln International
These are the same eight advisors we interviewed in mid-2019. See what they thought then by reading 8 M&A advisors urge closing deals now, while economy stays strong. See what they think now by reading the Q&As, below.
Source: The Latest