Dealmaking expanded in April but not as rapidly as in March, according to Mergers & Acquisitions’ M&A Conditions Index (MACI). The MACI composite score was 54.0, down from 57.5 the previous month.
The index component that dropped the most was Divestitures, which fell 12 points. Corporate spin-offs fueled activity in 2016, especially in the first half of the year, but they may be tapering off in 2017.
Leads for new deals declined nearly 5 points but remained robust, with a score of 65.6. M&A business activity fell more than 5 points and staffing 3.5 points, while completed deals stayed flat.
Contributing to the slower pace were concerns about the federal budget, tax policy, healthcare legislation, trade agreements and global politics, dealmakers said. Nonetheless, most who participated predicted that regulatory hurdles and taxes will be reduced by the federal government, moves expected to boost M&A.