Baker McKenzie M&A Partner, Michelle Heisner, was interviewed by Law360 for an article on the future of the M&A market.
It is widely expected that, in keeping with his pro-business campaign promises, President-elect Trump will significantly relax antirust policy when he takes office. With fewer regulatory hurdles to close a deal, the M&A market may be set for a boom after several years of hibernation.
Michelle notes that, "a lot of practitioners remember the M&A fervor of Trump's first term and think that the promised business-friendly and deregulatory agenda of Trump's second term could lead to another upswing." The future is a less certain when the new Administration's other planned policy changes are taken into consideration, something that may be being overlooked amidst the euphoria of a potential dealmaking revival. Michelle points out that "if Trump makes good on his trade agenda and his immigration policy promises, we could see rising prices across the board," which could strain businesses and make rate cuts less likely, a combination that would blunt interest in M&A.
What is clear is that the outlook is sector specific. The new Administration is expected to support policies in favor of the oil and gas industry, which will likely use deregulation for further consolidation. Pharmaceuticals, healthcare and health insurance sectors are other areas that Michelle sees as potential "winners" under the new Administration's policy changes. Renewable energy, on the other hand, may suffer if the Inflation Reduction Act is clawed back.
The full article can be read here: Law360