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UBS expects mergers and acquisitions to increase next year after a strong October indicated activity could return after weakness caused, at least in part, by volatile markets and higher interest rates.
Huge mega deals in the October oilpatch, including Exxon (XOM) planned $60 billion acquisition of Pioneer Natural Resources (PXD) and Chevron (CLC) Announced Planned acquisition of Hess for $53 billion (HE IS), makes UBS think that mergers and acquisitions could begin to recover.
“October gives hope not just for a continuation, but potentially for a pretty strong rebound in M&A, led by the United States,” Marc-Anthony Hourihan, global co-head of M&A at UBS, said at a news conference last week. pass. We are already thinking about a rally in 2024, given what was happening in the stock markets. Additionally, cross-border conversations indicated it could be a reasonably good year. “I would say late October and early November have heightened that sentiment, particularly among our corporate clients but also among our financial sponsor clients.”
UBS also expects to see an increase in private equity deals, with trillion-dollar private equity firms that have been on the sidelines.
“We had a wave of private acquisitions last year and earlier this year, which has slowed,” Simona Maellare, global co-head of UBS’s Alternative Capital Group, said in the briefing. valuation, and with stocks falling so much, how willing are boards to go down and be flexible in terms of valuation? We expect more private acquisitions to be made, if not later this year. looking ahead to next year, as private equity firms are very actively working on several private acquisitions. “This covers the entire spectrum of smaller, but also multi-million dollar deals.”
Goldman Sachs (New York Stock Exchange:GS) expect to see a “a little less robust” trading activity in the medium term, Jim Esposito, co-head of Goldman’s global banking and markets division, told Reuters in an interview on Thursday.
The total value of mergers and acquisitions fell to $717.4 billion during the September quarter, according to Dealogic data, from $738.1 billion last year during the same period, according to Reuters.
