How Business Cycles Affect M&A Valuation
Allan Marks, Global Project, Energy & Infrastructure Partner at Milbank
M&A valuation isn’t just about looking at the numbers. There are a lot of different factors that affect and contribute to the volatility of the M&A market.
In this episode of the M&A Science Podcast, Allan Marks, Global Project, Energy & Infrastructure Partner at Milbank, discusses how business cycles affect M&A valuation.
Things you will learn:
• What is a business cycle
• What is a credit cycle
• How business cycle impact M&A valuation
• Common Mistake during M&A valuation
• Importance of culture in M&A
Episode Timestamps
00:00 Intro
11:00 What is a business cycle
12:41 What is a credit cycle
16:59 Cycle’s impact on energy sector
19:09 How business cycle impact M&A valuation
22:36 Industries most affected by the cycles
26:43 M&A valuation for first-timers
31:47 Importance of culture in M&A
34:23 When to pull of a deal
37:37 Example of failed deals
41:59 Example of good deals
45:43 Common Mistake during M&A valuation
46:43 M&A function maturity
48:02 Other early M&A considerations
49:15 Craziest thing in M&A