What to Expect in M&A in 2020

The video discusses the M&A market trends for 2020, highlighting the role of cash-rich strategics and financial sponsors. It addresses challenges in executing M&A deals, such as market volatility and internal forecasts. The video explores options for private companies in M&A, emphasizing founders' autonomy and the emergence of tech conglomerates. It also considers regulatory issues and their impact on M&A activities.

What is a significant trend expected in the M&A market for 2020?

• Decline in cash-rich strategics

• Increased dominance of traditional PE funds

• Decrease in the size of target companies

• More power exercised by targets in negotiations

What is a major challenge for companies executing large transactions in a volatile market?

• Lack of investor interest

• Predictability of tariffs

• Uncertainty in internal forecasts

• Stable economic conditions

What is a potential opportunity cost for companies doing nothing in the M&A market?

• Increased market share

• Higher interest rates

• Rivals gaining competitive advantage

• Improved internal forecasts

What negotiation strategy might tech companies use when selling to larger public tech companies?

• Accepting all consideration on day one

• Reducing the size of the deal

• Maintaining some level of autonomy

• Avoiding dual class structures

What regulatory issue might impact big tech companies' ability to pursue M&A deals?

• Increased market power

• Pressure to break up

• Lack of competition

• Stable regulatory environment