The recent spate of mega deals suggest that uncertainty surrounding the potential effects of Brexit and the U.S. presidential election has lifted. This means the global M&A market is poised for strength in 2017, deal-making experts told attendees at The Deal's Deal Economy event in New York City Thursday.
That's especially true of the U.S., where corporate tax changes are likely to spur M&A activity, according to the experts, including a financial strategist who served as an adviser to the campaign of President-elect Donald Trump. The discussion focused on the outlook for global markets and transactions.
"I think the U.S. will continue to be the place to make acquisitions," Paul Parker, Global Mergers co-chairman at Goldman Sachs Group, said at the meeting. Parker added that until the wave of European elections pass, the U.S. is likely to dominate the near-term deal environment.
Parker was joined by William Casey, Americas vice chair of transaction advisory services at Ernst & Young LLP, and Global Market Advisers Chief Strategist Jonathan Galaviz, who also served as an adviser on national Hispanic outreach and Asia-Pacific economics to the Trump campaign. Brian Sullivan, co-host of CNBC's "Power Lunch," moderated the session.
Galaviz pointed to Trump's comments on corporate tax repatriation as a major catalyst for deals in the U.S., forecasting that barring any resistance from Congress, the Trump administration should successfully pass a temporary tax holiday for the repatriation of overseas funds.
"That's going to be one of the biggest one-time inbound inflow of capital that America has ever seen," Galaviz added, a surge that Sullivan characterized as a rain of gold upon companies lucky enough to be at the end of the rainbow.