The era of corporate splits and carveouts at Wall Street: Is De-consolidation is the new growth mantra?
Higher equity multiples are being chased as corporates face pressure to extract value from strategic acquisitions amidst macroeconomic uncertainty, riskier exposures, and expensive credit. Jasper Colin's surveys found that over 40% of global corporate leaders anticipate a persistent severe recession in the coming quarters, with a third of them expecting a corporate divestiture decision by the end of 2024. In Q1'2023, divestiture transactions in the US saw a 15% Q-o-Q increase, driving overall activity in the US M&A market, which, conversely, experienced a 6% decline.