If you look at the history of M&A, there are a variety of waves. Some of the main forces include changes in technology, innovations in financing, economic growth and regulatory change.
So, with this year's heated presidential election, it's a good idea for dealmakers to take note. Actually, this is the topic of a piece in today's Wall Street Journal [a paid publication].
If the Dems get into the White House, we may see a backlash against the buyout folks. After all, such transactions often lead to layoffs. Besides, as businesses consolidate, there may be less competition and higher prices. Thus, the Dems may also get more aggressive with antitrust enforcement.
Oh, and something else: we may see a rollback on lower taxes, such as the favorable rates for dividends and capital gains. No doubt, this would have a big impact on dealmaking.
The problem? Well, the financial system is mired in a credit crunch and banks are holding back on transactions. So while there may be many eager investment banks hunkering for deals, it's probably a good bet we won't see much of a pickup anyway.
Tom Taulli is the author of various books, including The Complete M&A Handbook
