How Business Cycles Affect M&A Valuation
M&A Science4 Maalis 2024

How Business Cycles Affect M&A Valuation

Allan Marks, Global Project, Energy & Infrastructure Partner at Milbank

M&A valuation isn't just about looking at the numbers. There are a lot of different factors that affect and contribute to the volatility of the M&A market.

In this episode of the M&A Science Podcast, Allan Marks, Global Project, Energy & Infrastructure Partner at Milbank, discusses how business cycles affect M&A valuation.

Things you will learn:

• What is a business cycle

• What is a credit cycle

• How business cycle impact M&A valuation

• Common Mistake during M&A valuation

• Importance of culture in M&A

This episode is sponsored by the DealRoom

Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at dealroom.net.

Episode Timestamps

00:00 Intro

11:00 What is a business cycle

12:41 What is a credit cycle

16:59 Cycle's impact on energy sector

19:09 How business cycle impact M&A valuation

22:36 Industries most affected by the cycles

26:43 M&A valuation for first-timers

31:47 Importance of culture in M&A

34:23 When to pull of a deal

37:37 Example of failed deals

41:59 Example of good deals

45:43 Common Mistake during M&A valuation

46:43 M&A function maturity

48:02 Other early M&A considerations

49:15 Craziest thing in M&A

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