Dealmakers and executives are optimistic for quality (over quantity) growth, says Vintage M&A panel

Sorry. I cannot type quickly enough to document all of the economic solutions to save the planet reveled during our expert panel at the Mergermarket Life Sciences and Healthcare Forum 2016.

panel

 

Economic solutions to save the planet? Yes, our panel was THAT smart.

  • Jeffrey Schwartz, Principal, Bain Capital
  • Peter van der Goes, Managing Director, Goldman Sachs
  • Arek Kurkciyan, Managing Director, Morgan Stanley
  • Fred Hassan, Partner and Managing Director, Warburg Pincus
  • Trevor Loe, Vice President, Vintage

Overall, the panel is optimistic for QUALITY (ie well vetted) deals in the biotech and biopharma sectors as we propel into Q2.

Some of my notes:

  • Dealmakers will benefit from the reassuring factors that helped drive 2015 M&A to its highest levels, although smaller transactions and new sectors may see the most advancement in 2016
  • Acquirers will remain steadfast on their to target for positive market reactions, but now with better discipline regarding deal terms and judgement in reaction to investors demonstrating more diligence when countering deal announcements
  • There is an tangible boardroom confidence that is helping to drive acquisitions
  • Deals will be driven by competitive factors as corporations look for opportunities to strengthen their growth profile
  • Five years of stable growth has proven to chief executives that the post-recession recovery isn’t fleeting, and armed with a massive cash reserve, corporate leaders have the means and confidence to pursue acquisitions or to optimize their portfolio through corporate clarity actions
  • $6 trillion in cash “leftover” from 2015 provides dealmakers the ammunition to make acquisitions for improving earnings
  • CEOS need to “spend the cash” on deals before they feel pressure to return it to shareholders
  • Private equity funds may play a more significant role in the year as capital available for investment purposes is at a new peak
  • Cross-border transactions will continue to provide a significant source of value creation
  • Activist investors will continue to seek expansion

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