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Soaring Valuations Open Doors for Banking M&A Resurgence

Publisher: Law360
March 22, 2017

Michael Rave was quoted in an article, "Soaring Valuations Open Doors for Banking M&A Resurgence," in Law360. The article reports that strong stock market valuations have prompted banks to carry out mergers and acquisitions that had been long put off. Rave told Law360 that once more deals start making headlines, more companies will feel compelled to act for fear of missing out on the prime targets. "It becomes somewhat of a feeding frenzy. There will be one big deal that happens and people will feel compelled to make their own move so they don't get shut out of what they think is going to be a hot acquisition market," Rave said. At the same time, these are just predictions of changes that may come. It's still unclear what changes — if any — will come to regulatory reform and it's still unknown who will fill the vacant or soon-to-be vacant positions. If those changes are not made, or are made in a way that does not benefit banks, M&A in the industry could slow, explained Rave. "If it's May, June or July, and there hasn't been much movement in interest rates and any shift in regulations, it might cool down. It's not a slam dunk that we're going to have these deals," he said.


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