“M&A Lies” Not Really Lies At All
Some time last year, Deloitte launched its “Straight Talk” series called M&A Lies (And Why They’re Sometimes True). It’s a catchy title, but after receiving a few press releases on the topic, I have to say that it’s painfully misleading. Take today’s M&A Lie #3: “M&A matters only during a boom.” Since when was this a widely-held assumption? It certainly isn’t among investors. We have listened for months as private equity pros fill the conference echo chamber with comments like “investing in downturn produces the best returns,” and “Now is a great time to buy,” etc. Everyone wants to play in a down market, so they can show off how resourceful they are, and how hot the returns on their ’08 and ’09 vintage funds will be. That makes Deloitte’s M&A Lie the opposite of a lie! It’s a straw man!
