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US M&A Levels Remain Healthy, but Due Diligence and Deal Protections Will Become Even More Critical
Skadden – Acquisition market participants in the U.S. approached dealmaking with greater caution in 2022 than they did in 2021. Steadily rising interest rates and financing costs, persistent inflation, geopolitical uncertainty, heightened global regulatory scrutiny and a general decline in boardroom and investor confidence have all contributed to this change. Unpredictable market dynamics have made sellers wary of overly opportunistic buyers, while buyers have been cautious of overpaying in what they may see as a new normal. It has become more difficult to reach agreement than it was during the booming M&A market of 2021.