Following up on my previous post, another insight is:
The market cap of all companies last year was close to $60 trillion. Compare that with this year's market cap of $40 trillion or around 33% lesser.
Also, in light of the slowdown and cautiousness in corporate environment these days, one can expect the conversion ratio to fall somewhat. Maybe from around 20% to 15%.
Then M&A volume would drop by around 33*1.25 = 42%.
So, the value add by a consultant here is the fact that conversion ratios for M&A transactions would drop from 20% to 15%.
The market cap of all companies last year was close to $60 trillion. Compare that with this year's market cap of $40 trillion or around 33% lesser.
Also, in light of the slowdown and cautiousness in corporate environment these days, one can expect the conversion ratio to fall somewhat. Maybe from around 20% to 15%.
Then M&A volume would drop by around 33*1.25 = 42%.
So, the value add by a consultant here is the fact that conversion ratios for M&A transactions would drop from 20% to 15%.
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