Our CEO, Rami Cassis, recently wrote an article for Barron’s about how the past month of new tariff announcements is deepening the slowdown in dealmaking.
Throughout July, new tariffs were announced on major US trading partners, adding another layer of uncertainty for dealmakers when deal volume is already down. Each announcement resets the assumptions underpinning transactions already in progress.
Rami’s view is that conditions will get worse before they improve, with buyers and sellers unable to agree on price when the policy backdrop shifts week to week. Sellers remain anchored to pre-tariff valuations that buyers can no longer justify.
The firms that come through this storm will be those that focus on operational improvement rather than waiting for the window to reopen. Returns will have to be built inside portfolio companies rather than extracted at exit.
Read the full article at Barron’s here.
Featured image courtesy of Samuel Corum via Getty Images.
