Evercore Inc. Chief Executive Officer John Weinberg said he’s seeing signs of mergers-and-acquisitions activity brewing “below the surface” as companies get used to an environment with higher interest rates.
(Bloomberg) — Evercore Inc.
Chief Executive Officer John Weinberg said he’s seeing signs of mergers-and-acquisitions activity brewing “below the surface” as companies get used to an environment with higher interest rates.
“What we’re seeing internally is a real pickup in activity with our deals team,” Weinberg said Tuesday at Morgan Stanley’s US Financials, Payments & CRE Conference in New York.
“We think there’s so much being prepared. We think companies are doing their homework. We think sponsors are trying to load up and be ready.”
Investment banks have been hampered by increased market volatility ever since Russia’s invasion of Ukraine more than a year ago, leaving companies that are interested in debt and equity deals, M&A and initial public offerings on the sidelines.
Surging interest rates have also made financing deals more expensive.
Weinberg said he expects company reticence to change as executives become accustomed to the higher-rate environment.
“I think there’s a growing view that the market will turn,” he said.
“Nobody knows when, obviously, but people want to be ready for it.”
Evercore was among advisers to private equity firm Thoma Bravo, which agreed to sell its financial-software maker Adenza to Nasdaq Inc.
in a $10.5 billion cash-and-shares deal announced Monday.
Read More: Nasdaq Seeks Predictability in Deal to Buy Thoma Bravo’s Adenza
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
