Strategic activity continued to be a key driver of M&A deals globally and in the U.S. in 2017, helping corporations grow earnings and better position themselves to compete in the global marketplace. The factors that contributed to market confidence last year — stable equity markets, attractive financing, strong balance sheets — continue to point to a robust environment in 2018. Deal scrutiny likely will remain challenging, as Congress proposes changes to toughen CFIUS reviews, Europe continues to push novel theories of antitrust enforcement and jurisdictions around the globe focus on tightening foreign investment controls.
The reduction of corporate taxes combines with favorable market conditions to fuel optimistic expectations for the U.S. capital markets in 2018, and new regulatory tweaks at the SEC could further encourage IPOs. We also look at the slowing of restructurings and financial distress across most sectors in the U.S. and examine the flexibility asset-based loans offer borrowers with international businesses.This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. This memorandum is considered advertising under applicable state laws.