Written by Parabellum Investments
28 Jul
In a recent article for Barron’s, Rami Cassis argues that despite optimism in some corners of the market, the current environment is far from conducive to a genuine M&A rebound – particularly in the middle market. He warns that renewed tariff threats from President Trump risk deepening an already serious dealmaking drought.
Cassis points out that while overall deal values have risen due to a few high-profile mergers, deal volumes have hit a 10-year low. He highlights that midsize companies, unlike large corporates, are less resilient to political and economic uncertainty. With Trump’s proposed tariffs on key trading partners, investor confidence is already waning, and deal activity is likely to decline further as a result.
He also notes the broader consequences for the private equity industry, which is facing limited exit opportunities, disillusioned investors, and falling foreign capital inflows. If macroeconomic instability continues, Cassis cautions, the role of PE as a facilitator of M&A could be fundamentally undermined.
Read the full article here.
