(MT Newswires) -- Paul Taubman, Chairman and CEO of PJT Partners, has observed a significant drop in the volume of mergers and acquisitions (M&A), from $4.5 trillion before the pandemic to $3 trillion during it. When the US Federal Reserve (Fed) cut interest rates to zero, the volume climbed to $6 trillion, but fell again to $3 trillion following eleven consecutive rate hikes. Taubman highlights the crucial role of private equity in stimulating the M&A market, by encouraging asset sales and reinvestment. However, he warns that the recovery will be gradual, given the cautious management of these firms. He also notes that political uncertainty, particularly during an election year, can increase volatility and dampen deal flow. Taubman expects M&A activity to strengthen at the start of the year, possibly slowing down in the run-up to the elections, before rebounding once the political situation has stabilised.

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