September 13, 2024
M&A Trends: Dealmakers Tap the Brakes Pending Election
A recent Grant Thornton survey asked dealmakers about how the US presidential election was affecting their M&A activity. While most expect to see an uptick in deal volume over the next six months, this excerpt notes that a substantial minority are postponing deals until after the election:
Although 67% of M&A professionals say deal volume will increase in the next six months, slightly less than half are hitting the pause button on deals until after the U.S. election in November, according to a Grant Thornton survey.
Forty percent of the 255 M&A professionals surveyed said they’re holding back on their M&A plans until after the election. The respondents included corporate development team members, investment bankers, in-house legal professionals, private equity investment professionals, M&A attorneys and CFOs.
About half of the respondents said the election will have no effect on their deal activities, and 10% said they are speeding up their M&A processes to close before the election. Grant Thornton Transaction Advisory Services Managing Director Vic Sandhu said buy-side and sell-side professionals whose businesses are especially sensitive to regulation and market uncertainty tend to be the ones who are pausing deal activity.
Almost 50% of survey respondents identified the election’s effects on the overall economy as having the largest impact on M&A, while 25% cited its effects on regulatory policy and 22% its implications for tax policy.
– John Jenkins