DeFeo Discusses the Outlook for M&A

November 16, 2022 – Media Mention
CNN Business

Partner and chair of Herrick's Corporate Department, Morris DeFeo, spoke to CNN Business about the state of Wall Street bonuses this year. 

The article noted that a recent report found that bankers who help consolidate companies could see their bonuses fall and paychecks drop as the threat of recession pressures employers to cut costs. The findings from this report encompassed an analysis of economic data and consultation with the largest banks and hedge funds. 

The article additionally highlighted that M&A deal volume slowed significantly in 2022 "as dealmakers contended with rising interest rates and a possible recession." Morris explained that the M&A market is a leading economic indicator. “I think a lot of the slowdown [in M&A] was in anticipation of a [shaky] economy.”

DeFeo noted that lackluster performance bonuses could end up kicking banking activity back into gear. “There are a lot of people who are very motivated by incentives on both the financing side and the strategic side to see things move forward. "Morris concluded, “We’re not going to sit back and wait to see where things go. That’s not the nature of our financial business community.”

Read the full article in CNN Business here.