JPMorgan's Aiyengar on Increase in M&A Deals in 2025

Watch JPMorgan's Aiyengar on Increase in M&A Deals in 2025 - Bloomberg on Dailymotion

Transcript

00:00First, M&A dealmaking, $3.4 trillion in the last nine months.

00:06And historical average has been about $4 trillion.

00:09So even if you have a trillion dollars, we are looking at 10% higher,

00:14but it's probably right now we are tracking to about 30% higher year-over-year.

00:18And this is after having a pause for about four weeks or so

00:23when it looked like dealmaking was going to look very different.

00:27You talked about record highs in S&P and NASDAQ,

00:30but yet, Jenny just talked about it, the importance of scale,

00:35which is driving companies to do larger and larger deals.

00:4049 mega deals, larger than $10 billion.

00:4449, just in nine months,

00:46contributing to about a trillion dollars of volume.

00:49Because the correlation between valuation and scale is at an all-time high.

00:55And so you see every strategic who is saying,

01:00yeah, if I want to do an M&A deal, how do I do a bigger and bigger deal?

01:04But yet, at the same time, there's about 20% of the S&P 500,

01:10which is trading at a discount,

01:13and a meaningful discount to their 52-week highs.

01:16So there's plenty of opportunities as well,

01:18which is why you see deals like these LBO deals happen.

01:21So there we are.