Lack of Smaller M&A Raises Questions as Megadeals Abound

The video discusses the impact of market volatility on CEO confidence and deal-making, highlighting a decline in smaller deals due to geopolitical issues. However, mega deals have thrived under these conditions, particularly in the healthcare sector, with examples like the Bristol Myers and Celgene merger. The video also explores the challenges faced by bankers due to regulatory hurdles and increased investor scrutiny, driven by the rise of passive investing strategies.

What is one reason for the decline in $1 to $10 billion deals?

• Increased CEO confidence

• Market stability

• Geopolitical issues

• Abundance of cash

How do mega deals manage to thrive despite market fluctuations?

• They are funded by cash

• They involve stock-for-stock transactions

• They are smaller in size

• They avoid regulatory scrutiny

Which sector has seen a focus on mergers recently?

• Technology

• Healthcare

• Retail

• Finance

Why are smaller deals more profitable for bankers?

• They require more advisors

• They involve less regulatory scrutiny

• They are less work

• They have higher profit margins

What is causing active managers to challenge big deals?

• Pressure from passive investing

• Decline in mega deals

• Increased regulatory support

• Lack of market opportunities