Why 2019 Will Be a Better Year for M&A Than 2018

The video discusses the outlook for M&A in 2019, highlighting factors like market volatility, interest rates, and trade tensions. It explores the role of liquidity in tech M&A and the trend of non-tech buyers acquiring tech companies. Risks such as cultural dissonance and overpaying are considered. The video also covers trends in IPOs and advisor behavior, and examines a Delaware court ruling on material adverse effects in M&A deals.

What factors are cited as potential challenges for M&A in 2019?

• Stock market stability

• Rising interest rates

• Decreasing trade tensions

• Increased buyer rewards

What is the general expectation for interest rate changes in 2019 according to the speaker?

• Three to four increases

• Zero to two increases

• Five to six increases

• No changes expected

What is a significant trend in tech M&A according to the speaker?

• Tech companies focusing on internal growth

• Tech companies acquiring non-tech firms

• Non-tech companies avoiding tech investments

• Non-tech companies acquiring tech firms

What is a potential risk for non-tech companies acquiring tech firms?

• Facing no competition in tech acquisitions

• Overpaying due to unfamiliar metrics

• Underestimating the value of tech assets

• Easily integrating tech cultures

What unusual behavior is noted among advisors in tech IPOs?

• Avoiding any form of self-promotion

• Only working with established tech firms

• Debasing themselves to get hired

• Refusing to work with tech companies

What legal concept allows a buyer to back out of an M&A deal?

• Interest rate adjustment

• Market volatility clause

• Material adverse effect

• Trade tension clause

What was significant about the Delaware ruling on material adverse changes?

• It allowed a buyer to walk away from a deal

• It favored the defendant for the first time

• It made it easier for sellers to back out

• It had no impact on future M&A deals