From Yahoo Finance: 2025-04-01 06:02:00

A global trade war initiated by U.S. President Trump has dampened bankers’ expectations for a strong year in deals on Wall Street. First-quarter M&A volume increased 12.6% to $984.38 billion, driven by Asia Pacific deals. U.S. M&A volume fell 13% to $436.56 billion, with IPO activity increasing and market uncertainty looming.

Some recent IPOs have underwhelmed, with offerings declining by 17.7% to 1,065. Deals announced last year during optimistic times are now being reconsidered due to increased uncertainty in the market. Analysts are trimming earnings forecasts for banks advising on M&A deals.

Wall Street’s hopes for a prosperous 2025 have been dashed as U.S. stocks have dropped since Trump’s inauguration. Confidence is crucial for M&A markets, but uncertainty has led to abandoned deals. Investment banking fees have fallen 4.9% globally, with the number of deals at a 20-year low.

A burst of megadeals in March and robust Asia Pacific IPO activity saved the industry from a lackluster quarter. European deals contributed to a 7% activity increase, but deal totals fell 32%. Jefferies missed earnings estimates due to stalled deals, setting a potentially bleak outlook for larger banks reporting soon.

The volatility in the market threatens IPOs, with major companies delaying plans due to uncertainty. Venture Global and CoreWeave’s disappointing performances have raised concerns about weakening sentiment toward AI infrastructure. Some European companies have opted to sell themselves rather than go public.

Despite challenges, there is still optimism in the market with liquidity from sponsors and strategics. A desire to put cash to work and pent-up demand from slower years of M&A indicate potential for growth. While caution remains, recent activity has generated more optimism for the future.



Read more at Yahoo Finance: Global deal activity disappoints, M&A revenue falls as Trump pursues tariffs