M&A and Activism: Reflections from the 35th Annual Tulane Corporate Law Institute
In March, our M&A and Activism team attended the 35th Annual Tulane Corporate Law Institute, the premier M&A, corporate and securities law conference in the United States.
Mike Gaudreau pens 5 key themes and trends for the upcoming year in M&A and Activism which emerged throughout discussions during the week:
It’s a buyer’s market. Well-funded corporates can find compelling opportunities and less competition from PE funds. Seller’s will still be wed to peak valuations, but investor appetite for certain value is only increasing.
Companies with a large valuation gap will face near term pressure from activists and bidders alike until the gap is closed. Activism is on the rise, and so too is unsolicited activity in the deal markets. Having a prudent activism preparedness strategy can save a lot of scrambling…especially if you valuation has come down significantly over the past year.
Funding considerations to play a bigger role in assessing take private deals. Be wary of funding questions on private equity deals. Debt markets continue to be challenged as uncertainty on interest rates remains.
Growth and scale still matter, especially in a risk off environment. Multiple spreads have increased between the S&P 400, S&P 500, and S&P 600 when compared to the bull run between 2012 and 2019. Get bigger…improve your valuation.
The real lesson for the team was that bringing home gator souvenirs for your toddlers will apparently make you the parent of the year!
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