NetEase Francisco January 22nd news according to foreign media reports, Array Ventures (VentureBeat) managing partner what Rooty · Gandhi (Shruti Ghandi) with the Trump banker friends talk about the management of M & a market view. There is a general consensus that there may be more mergers and acquisitions this year (M& A), for the following reasons:
1 Trump administration is expected to be more friendly to business, and may take the following steps to make more money to large companies:
· repatriation of funds obtained from overseas tax area. Many companies have cash in low tax areas outside the country, because of the high corporate tax in the United States and do not want to return to the United states. In 2016, the U.S. corporate income tax for the third world. If the United States reduces these rates, companies that hold overseas funds will be more likely to bring money back to the United States and invest locally. If Trump can play its own influence to American companies money back to the United States, no doubt some of these funds will be used for acquisition.
· easier to borrow now. After the financial crisis, the United States in order to stimulate corporate loans and lower interest rates for the acquisition, use in the low interest rates of loans. As the economy improves, the Fed will raise interest rates again, making it more expensive to buy. So companies will seek to borrow and buy before interest rates rise.
· reduced regulation. If you are aware of Trump’s policy proposal from the nominee to the final election, he will find that he has always advocated Pro business and anti regulation. Regulation is actually a form of Taxation, which means that companies can have more money to spend on other things, including mergers and acquisitions. Such long-term consequences are not discussed here.
2 venture capitalists hope that this year’s M & A and IPO can be the same as in previous years, but this year or will be unusually frequent. Many large venture capital companies are in a two-year funding cycle, and has raised new funds in early 2016. This means that they will return to the market in 2018, and need to come up with important results before that. Many companies have begun to predict that this year there will be more IPO and M & A.
3.2016 years of science and technology IPO compared to 2015 fell by 30%. Many companies are waiting for the opportunity, some of which have been submitted to the S-1 but not successfully listed companies are under pressure. Moreover, for those companies that have raised a lot of capital, investors may become impatient.
of these factors in the short term will promote the creation of more mergers and acquisitions and IPO.