Tax Inversion Reform Unlikely to Sink M&A Recovery, Goldman Says
2014-08-13 05:54:37.827 GMT
By Gaurav Panchal
Aug. 13 (Bloomberg) -- With fundamentals for robust M&A
cycle still firmly in place, potential reform is unlikely to
alter positive outlook on M&A, Goldman Sachs says.
* Further growth in U.S. Strategic, Sponsor M&A, and European
M&A capable of offsetting any drags from a decline in tax
inversion deals: Goldman
* Tax inversion deals accounted for 9% of 2014 total global
M&A announcements, nearly 10% of total fee backlog: Goldman
* Says inversion deal flow extremely concentrated with
only 14 deals in 2014 to date, largely concentrated in
Healthcare
* Says standalone M&A boutiques’ exposure to deal flow very
limited
* Within coverage, EVR (neutral) only firm with any
meaningful level of exposure, ~14% of its current fee
backlog or est. 5% EPS exposure
* LAZ (conviction buy) most insulated in case of a
slowdown in inversion activity: Goldman
Link to Company News:{EVR US <Equity> CN <GO>}
Link to Company News:{GHL US <Equity> CN <GO>}
Link to Company News:{LAZ US <Equity> CN <GO>}
Link to Company News:{MC US <Equity> CN <GO>}
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To contact the editor responsible for this story:
Gaurav Panchal at +44-20-7392-0511 or
gpanchal2@bloomberg.net
2014-08-13 05:54:37.827 GMT
By Gaurav Panchal
Aug. 13 (Bloomberg) -- With fundamentals for robust M&A
cycle still firmly in place, potential reform is unlikely to
alter positive outlook on M&A, Goldman Sachs says.
* Further growth in U.S. Strategic, Sponsor M&A, and European
M&A capable of offsetting any drags from a decline in tax
inversion deals: Goldman
* Tax inversion deals accounted for 9% of 2014 total global
M&A announcements, nearly 10% of total fee backlog: Goldman
* Says inversion deal flow extremely concentrated with
only 14 deals in 2014 to date, largely concentrated in
Healthcare
* Says standalone M&A boutiques’ exposure to deal flow very
limited
* Within coverage, EVR (neutral) only firm with any
meaningful level of exposure, ~14% of its current fee
backlog or est. 5% EPS exposure
* LAZ (conviction buy) most insulated in case of a
slowdown in inversion activity: Goldman
Link to Company News:{EVR US <Equity> CN <GO>}
Link to Company News:{GHL US <Equity> CN <GO>}
Link to Company News:{LAZ US <Equity> CN <GO>}
Link to Company News:{MC US <Equity> CN <GO>}
For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}
To contact the editor responsible for this story:
Gaurav Panchal at +44-20-7392-0511 or
gpanchal2@bloomberg.net