13 May M&As: IS THE BOOM OVER?; PUMP AND DUMP.
Welcome to this week’s business and media intelligence update.
M&As: IS THE BOOM OVER?
After the 2021 boom in merger and acquisition (M&A) activity in Australia, there are signs the “boom” maybe over, according to new research.
Rising interest rates have seen the cost of debt funding increase, while escalating geopolitical tensions (Ukraine, China …) have dimmed investor sentiment and caused many bidders to be more cautious.
Law firm Clayton Utz believes the net effect of these factors adds up to a murky near-term outlook for the Australian M&A market, which could result in fewer deals in 2022 than in the previous 12 months.
Read more about the lawyer’s findings here.
PUMP AND DUMP
A much-publicised “crackdown” last year by the Australian Securities and Investment Commission (ASIC) on “pump and dump” schemes promoted on social media appears to have worked. At least for now.
The schemes, which can be illegal, involve coordinated moves by investors to push up the value of a stock before selling the shares in the hope that they will profit.
ASIC found that sending warnings across social media chatrooms about the illegal aspects of such schemes has been effective in preventing a new “pump and dump” wave so far this year. They also pointed to fewer opportunities for stocks to spike in what has become a much less active or “frothy” market.
But ASIC says the regulator will remain vigilant, predicting these schemes may resurface again.
THE POWER OF SMALL TALK
If you’re looking for an excuse to ramp up the office banter, look no further.
Research has found that small talk inspires much more than comical chitter-chatter – it can help set in motion some of our most-valued relationships and build trust in the workplace.
Findings from Princeton University have shown that our brain waves actively synchronise during powerful storytelling so that we are not just sharing meaning with each other, but human experiences.
Time to bring back those water-cooler conversations…
SECURITY FOR SUBBIES
The recent collapse of several big-name construction firms has shone a spotlight on the nature of risk in the sector – particularly for subbies who are left exposed every time a civil contractor goes under.
Justin Amos, CEO of Lygon, a Cannings client, spoke to Ben Wilmot from The Australian about how the company’s digital bank guarantees can reduce some of the risks for subbies
Read more here.
ONE MORE THING
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