Lemkau: M&A Fundamentals Are Still There to Drive Market

The video discusses the challenges and opportunities in the market, focusing on limited organic growth, regulatory headwinds, and the role of private equity in driving growth through mergers and acquisitions. It highlights the impact of regulatory issues, such as antitrust and tax inversions, on market activity and strategic decision-making. The discussion also covers the dynamics of leverage buyouts and the influence of capital markets on private equity activity.

What are the main challenges faced by large companies in 2016 compared to the previous year?

• More positive shareholder receptivity

• Greater regulatory headwinds and less shareholder receptivity

• Increased organic growth opportunities

• Higher availability of cheap capital

What is expected to drive the return of big leveraged buyout deals?

• Decrease in private equity dry powder

• Need to utilize private equity dry powder and additional capital sources

• Increase in organic growth opportunities

• Reduction in capital market availability

What percentage of M&A activity in 2014 and 2015 was driven by tax inversions?

• 5%

• 10%

• 20%

• 15%

How have antitrust regulations affected M&A activities?

• They have increased the number of successful transactions

• They have made it easier for companies to merge

• They have stopped some transactions and increased regulatory scrutiny

• They have reduced the need for regulatory approval

What is a potential consequence of the current regulatory environment on M&A activities?

• Increase in large-scale mergers

• Shift towards more asset sales and smaller transactions

• Decrease in regulatory scrutiny

• More tax inversion deals