Wells Fargo: “Now or Never” Mindset May Drive Near-Term M&A as Trump Era Winds Down

After Donald Trump returned to the White House, the political environment for U.S. mergers and acquisitions changed, and companies renewed their enthusiasm for pursuing transformative deals that had once seemed out of reach. But the time available to U.S. companies may be running short. According to Sina Finance, Democrats’ landslide victory in the midterm elections has suddenly created urgency on corporate boards. Executives are considering whether they have one last opportunity to complete a transformative deal while merger-friendly officials remain in the Trump administration. Conversations with top advisers indicate that the election result has prompted companies to consider accelerating their plans and bringing major strategic deals forward. Companies recognize that a resurgent Democratic Party could impede the major M&A wave that has been building during Trump’s second term and helping drive Wall Street revenue to record levels. Kevin Foley, JPMorgan’s co-head of investment banking, said companies should be prepared to pursue deals in another complex business environment. Foley, who is based in New York, said, “The biggest risk may be thinking that everything will eventually return to normal. Doing nothing is always an option, but in an era when industries are changing so quickly, it is the wrong choice.” Wells Fargo senior banker Fernando Rivas said at an industry conference in Boston last Thursday that a “now or never” mindset will return and drive M&A activity in the near term.