4. Transactors will accept some regulatory and political uncertainty

Regulators have had some recent successes with classic anti-trust challenges. However, where regulators have taken non-traditional approaches – such as contesting vertical integration – to challenge transactions, transactors have still prevailed on a number of occasions. This has encouraged transactors to take calculated risks in relation to the regulatory environment.

The impact of the upcoming presidential election on activity is currently unknown. Despite low sentiment towards corporates on both sides of the House, corporates are expected to plough on with deals, especially those that are transformational.

That said, in the current environment, transactors should expect mergers to require longer timelines between signing and closing.