Davis Polk partner and Private Equity co-head John Amorosi was quoted in Bloomberg Law on the M&A market and the decrease in deal activity compared to this time last year. John explained, “The macro environment and the geopolitical situation has gotten only worse since the beginning of 2022 and that has led to a trail off in deal activity and that trail off has only increased as 2022 has progressed.” He added that “there are lots of deals that people would like to do that people are not even going to try to do anymore because they know that the current regulatory environment is so hostile to any meaningful competitive overlap.”

John also noted that if M&A activity continues to slow, there are lingering concerns if private equity will continue to be a driver of investment and that the debt markets may not cooperate with the sponsors desire to put capital to work.