1. M&A activity dropped 9% amid market uncertainties. 2. Higher interest rates affect deal structuring in the industrial sector. 3. Focus on company valuation intensifies due to market uncertainties. 4. Creative deal structures are rising amid valuation gaps. 5. Strategic priorities have shifted towards enduring growth.
The article suggests current market uncertainty impedes M&A activity influencing valuations and advisory services, which affects MC's business environment. Past examples show that decreases in M&A engage in sector slowdown, impacting banks like Moelis.
The focus on M&A constraints and market uncertainties suggests a moderate likelihood of impacting MC's price, given Moelis' role in advising on such transactions.
Short-term M&A activity is located under immediate economic fluctuations such as interest rates and tariffs, creating uncertainty that can rapidly change the market landscape.
NEW YORK, Nov. 07, 2025 (GLOBE NEWSWIRE) -- Today's Marketplace (TMP) is proud to announce a featured interview with Moelis & Company's Managing Director Mark Henkels, who specializes in the industrials sector and Tirimba Obonyo, PhD, CFA, Associate Professor of Economics and Finance at Creighton University.
The pair joined Today's Marketplace host Jane King at the New York Stock Exchange to discuss the current state of mergers and acquisitions.
The full interview can be viewed online here.
When asked by King what he felt was driving the current 9% drop in M&A during the first half of this year, Dr. Obonyo said, "There have been a number of uncertainties clogging the markets. A lot has been made of the tariffs, for example. Everyone is waiting to see what is going to happen on those. Many are waiting to see how that unfolds before committing to such a tremendous amount of capital required for a typical M&A."
Dr. Obonyo went on to say that when it comes to M&A and one company buying another, you must think about three things. "One is you want to make sure that you have the right target, two is you want to make sure you get the right price, and three, you have to worry about the integration of the two companies – what comes afterward. With everything going on with the tariffs, interest rates, and all, everyone is still trying to gain their footing around these three things, and in particular, a company's valuation, or getting the right price."
Mark Henkels then explained how higher interest rates are shaping deal activity across the Industrial sector, noting, "Transformational transactions, optimizations, and portfolio repositioning remain active across the sector. In a higher interest rate environment, hurdle rates are higher, and one-off acquisitions can bring down valuations and slow activity as buyers and sellers work to bridge valuation gaps. As a result, we're seeing more creative approaches to deal structuring beyond all-cash transactions, and that trend is accelerating."
He continued, reflecting on how strategic priorities in industrials have evolved beyond pure growth, noting, "Growth will always be an important element, but there's a stronger focus now on simplification and letting investors decide on diversification. ‘Through-cycle' performance has become a consistent theme in industrial boardrooms – growth that can endure uncertainty is paramount, and that focus inevitably shapes valuation discussions."
TMP's interviews cover important business topics and solutions with insights from academic experts and business leaders.
About Creighton University
Creighton University is a Jesuit, Catholic university located in Omaha, Neb., that enrolls more than 4,100 undergraduate and 3,200 professional school and graduate students, bridging health, law, business, and the arts and sciences for a more just world. For more information, visit our website at www.creighton.edu.
About Moelis & Company (NYSE:MC)
Moelis & Company ("Moelis") is a leading global independent investment bank that provides innovative, strategic, and financial advice to a diverse client base, including corporations, governments, and financial sponsors. The Firm assists its clients in achieving their strategic goals by offering comprehensive, integrated financial advisory services across all major industry sectors. For more information, visit https://www.moelis.com/
About Today's Marketplace
Today's Marketplace (TMP) is a series of C-Suite interviews filmed at the prestigious New York Stock Exchange (NYSE) and the NASDAQ MarketSite studio for earned media distribution. TMP's multi-channel distribution provides robust, authoritative, and credible media exposure to under-reported stories focused on the intersection of business and higher education. Visit TMP at todaysmarketplace.tv.
For More Information Contact:
Today's Marketplace
producers@cmghd.com
A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/20e70685-2667-4579-a81d-19cedbabdf9b
