The Visionaries – Helping wealth survive

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How are inflation and rising costs of living affecting private clients in your jurisdiction? What impact is the changing financial climate having on their projections for the future?

To be honest, inflation and cost of living have not had much impact on our high net-worth clients or their projection of spending in the future, however these factors have impacted their portfolio management behaviours. There is a pivot back to fixed income, an investment which has not been in favour since the last low interest rate cycle.

Should the market drop and negatively impact net worth, then we expect to see changes in spending.

Is shareholder activism driving appetite for M&A? What is the buy-side in your jurisdiction looking for in terms of global acquisition?

In the U.S., trends post-Covid show a decline in overall M&A activity and a decrease in the number of shareholder activism campaigns focused on M&A.

In general, many M&A opportunities are financed, and rising interest rates are making the financing costs relatively high. Predictably, many buyers are waiting to see what interest rates are going to look like in the next 13-14 months. There are still strong Nevada buyers out there looking for opportunities to pick up companies at a bargain.

Read more in our brand-new publication, The Visionaries