Citi's Shafir: M&A Comeback Has Legs, SPACs Here to Stay

The transcript discusses the strong momentum in the market, particularly in M&A activities, driven by factors like SPACs, private equity, and liquidity. It projects potential growth in the market, with a focus on tech, biotech, and renewable energy sectors. The discussion also covers market stability, challenges posed by the pandemic, and the role of SPACs. The integration of private equity and SPACs is highlighted, along with the need for mega deals and corporate involvement to sustain growth.

What was one of the key drivers of the strong M&A market momentum in January?

• Increased government regulations

• Reduction in liquidity

• The SPAC market

• Decline in private equity involvement

What is necessary for the M&A market to potentially reach over four trillion dollars?

• A focus solely on the US market

• A reduction in private equity activity

• An increase in mega deals

• A decrease in tech industry deals

What factor is contributing to the current sustainability of M&A market trends?

• Decreasing CEO confidence

• Economic instability

• Flattening pandemic curves

• Rising unemployment rates

What is a potential challenge for the SPAC market's continued growth?

• Lack of high-quality sponsors

• Overheating of the market

• Decrease in private equity funds

• Limited interest from corporations

How much buying power is currently available in the market from SPACs?

• 400 billion

• 200 billion

• 800 billion

• 600 billion

What percentage of the market do SPACs represent even if their volumes double?

• 10%

• 20%

• 40%

• 30%

What is a key factor that could help maintain the M&A market's activity?

• Decline in SPAC activity

• Decrease in CEO confidence

• Increase in private equity funds

• Reduction in corporate balance sheets