Paul Weiss M&A Chair on Dealmaking: Less Volatility, More Practicality

The M&A Landscape

• 💡 Mergers and acquisitions (M&A) activity has been impacted by volatility, making deal-doing difficult.
• 🎯 When markets are volatile with wild swings, it becomes challenging to agree on terms and complete deals.

Antitrust and Regulatory Environment

• ⚖️ The previous administration's antitrust approach was seen as academic and prohibitive, making it nearly impossible to get deals approved.
• 🔑 The current administration, while still populist and focused on consumer protection, is taking a more pragmatic view on antitrust.
• ✅ Examples like the T-Mobile/Sprint and Ullet Packer/Juniper deals show a willingness to negotiate consent decrees and divestitures to get deals done.

Drivers for Future M&A

• 📈 With stabilized markets and a more practical regulatory approach, more M&A activity is expected in the second half of the year.
• 🚀 The shift from an anti-corporate sentiment to a pragmatic populist approach is a key driver for increased dealmaking.

Global Dealmaking Challenges

• 🌍 While the US market is becoming more practical, Europe remains very challenging for M&A.
• 🔍 The first call in dealmaking is now to lawyers to assess feasibility, not just in the US but globally, indicating a more rigorous review process.