Solomon Says He's Optimistic About Deals in Long Term

The video discusses how CEOs tend to be cautious in uncertain times, affecting significant business decisions. It highlights the ebb and flow of M&A activity in global businesses, emphasizing the need for consolidation and scale to compete effectively. Recent significant deals in the energy sector are noted as examples. The post-pandemic period saw a boom in M&A activity due to fiscal stimulus and free money, driven by financial sponsors and private equity. The video concludes with a strong view that M&A activity will grow in parallel with economic growth and market cap expansion, predicting a rise in strategic M&A.

Why might CEOs be cautious about making significant changes to their business during uncertain times?

• They are waiting for government approval.

• They want to avoid unnecessary risks.

• They are focused on internal restructuring.

• They lack the necessary resources.

What recent trend has been observed in the energy sector?

• A shift towards smaller, independent companies.

• Significant deals to increase scale and consolidation.

• A focus on reducing carbon emissions.

• A decrease in renewable energy investments.

What factor contributed to the extraordinary boom in M&A activity post-pandemic?

• A decline in global competition.

• High levels of fiscal stimulus and free money.

• A rise in consumer demand.

• Increased government regulations.

How does M&A activity typically grow over time?

• It grows in parallel with economic growth and market cap expansion.

• It decreases as market cap expands.

• It remains constant regardless of economic conditions.

• It fluctuates randomly without any pattern.

What is the expected trend for strategic M&A in the future?

• A decline due to market saturation.

• A steady increase as the market evolves.

• No change from current levels.

• A shift towards smaller, niche markets.