IR Global member Donald Densborn, Partner at Densborn Blachly LLP, features on LEVICK discussing M&A activity in the US.
Merger and Acquisition activity in the Great Lakes Region of the United States is moderating after a sustained period of robust activity. Rising interest rates have reduced the use of debt capital, impacting adversely deal feasibility and expected returns from leverage. Inflation is starting to suppress consumer demand and efforts to combat it have intensified. Supply chain delays that have plagued manufacturers and builders have “whiplashed” in some instances, resulting in oversupply. A post-COVID funk adversely affects workforce participation and productivity. Two consecutive quarters of negative GDP growth signal the existence of recession or one coming. COVID lockdown performance reversals and other earnings anomalies have presented valuation and due diligence challenges not seen before.
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