MARKET UPDATE

One-hundred and eighty-three M&A transactions closed last month. Year-to-date M&A activity is down 20.9% versus 2021. Capital levels in North America have decreased, with $2.2 trillion (USD) of cash on corporate balance sheets, compared to $2.4 trillion last month. This is consistent with news that corporate cash ratios fell in Q3 2022. There is approximately $1.2 trillion (USD) of private equity dry powder, while public equity valuations have stabilized.

‍VALITAS INSIGHTS

The Exclusive Negotiations Trap. It is a common fallacy that an exclusively negotiated deal is faster than a structured process. In reality, the acquirer with exclusivity rarely moves with urgency, often extending due diligence and dramatically reducing the likelihood of closing at the agreed price, if at all.