Senior Counsel Mark F. Schuber of the firm’s Corporate Practice Group recently participated in an interview with the Rochester Business Journal on the current trends and developments in the mergers and acquisitions (M&A) environment.
The article, titled “Rochester’s M&A market shows renewed momentum,” noted the M&A market has undergone significant shifts in recent years as interest rates, inflation and broader economic uncertainty influenced dealmaking.
“I would characterize the outlook right now as cautious optimism,” Mark said, noting he has observed investors and buyers still looking for the right opportunities, but with a focus on making sure the fundamentals of a deal are sound. “With markets stabilizing somewhat, the expectation is that the environment should remain stable and potentially strong over the coming months.”
He discussed the influence of technology on mergers and acquisitions. “Artificial intelligence can certainly increase efficiency when reviewing large amounts of data,” Mark said. “But with increased efficiency also comes increased expectations. Buyers now expect an even more comprehensive picture of the target company before completing a transaction.”
Mark also pointed out a noticeable shift in the time it takes for transactions to become complete. “We’re starting to see a lengthening of deal timelines,” he said. “A big reason for that is the amount of data companies now hold and process. There’s just a lot more information to get through during diligence. Buyers want a very complete understanding of what they’re acquiring.”
He called out cybersecurity and AI use as significant areas of scrutiny during transactions. “Firms and companies need to be careful about the AI tools they’re using,” Mark said. “You have to make sure those systems are properly safeguarded, so sensitive information isn’t exposed or shared outside the intended environment.”
“Companies today are processing extremely large amounts of data every day,” he said. “Buyers want to know that the right cybersecurity frameworks and protocols are in place. If there are gaps in cybersecurity or data protection, that can become a significant issue during diligence. It can impact valuation or even lead a buyer to walk away from a deal.”
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