The mixed start to the year is likely to continue as economic uncertainty remains. However, with the Federal Reserve’s monetary tightening campaign coming to an end, there could be strong opportunities for M&A activity in the second half of 2019. It is possible that M&A volumes will experience rapid growth during this period.
At a recent ADISA conference in San Diego, industry veterans discussed whether or not high interest rates, inflation and market volatility are presenting opportunities for investors. Michael Underhill – Founder, CEO and CIO Capital Innovations LLC., and President of ADISA – noted that “the only certainty is uncertainty in the marketplace” but suggested asset allocation and diversification can help hedge out some of this risk.
Raymond Davis – Chief Strategy Officer at Red Oak Capital Holdings – also spoke on taking advantage of levered lenders confronted by current high interest rate environments through “bailout” mergers & acquisitions (M&As).