Reports of M&A’s demise were greatly exaggerated

Although deal flow on a yearly basis decreased, compared to the record high levels of 2021, we remain comfortable that transaction activity will remain well above historic norms. We continue to see asset aggregation by acquirers seeking to grow through acquisition to increase top lines or market share and realize synergies.

It is worth highlighting that even in the face of market headwinds, acquisition transactions tend to proceed to completion due to the requirements of their legally binding merger agreements. While the challenges may rattle the lay observer, history shows that industry’s evolution does not stop indefinitely because of market volatility, macroeconomic hurdles, political uncertainty, and myriad other obstacles to corporate growth. In the short run, however, such challenges can vex buyers and sellers seeking a competitive edge.

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The commentary is the opinion of Westchester Capital Management. This material has been prepared using sources of information generally believed to be reliable; however, its accuracy is not guaranteed. Opinions represented are subject to change and should not be considered investment advice or an offer of securities.

Past performance is no guarantee of future results.

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