Chris Manderson is Quoted in Los Angeles Business Journal, "M&A Hesitation: Banker Fears ‘Rose-Colored Glasses’ Syndrome".
Chris Manderson, Partner and Co-Chair of the Business, Corporate and Tax department was quoted in Los Angeles Business Journal in an article titled, "M&A Hesitation: Banker Fears ‘Rose-Colored Glasses’ Syndrome".
Chris Manderson, a partner at Beverly Hills-based law firm Ervin Cohen & Jessup LLP specializing in mergers and acquisitions, venture capital, and debt and equity financing, said "the mismatch of expectations in value between buyer and seller was a primary cause for faltered deals in 2023."
“Simply put, the sellers wanted too much money. If you’re selling your house, and you’re getting offered half what your neighbor got a year or two ago, despite the fact that you’ve got a nicer property and a better home, that’s going to bother you,” said Manderson, who also serves as co-chair of the firm’s business, corporate and tax department. “These companies were hoping to get offers based on old valuation data that no longer really had any relevance.”
"As these companies come to terms with the likely economics of a deal in the current market, Manderson said, the Los Angeles market will see increased deal activity."
“Those gaps are beginning to close, and sellers may finally get the reality check they need to make a deal,” Manderson said.
"Manderson seconded the difficulty of dealmaking under the current FTC, adding that the regulatory threats to M&A may be foreign as well as domestic. He noted the planned $20 billion merger between Adobe and Figma, which officially fell through in December. In a press release, Adobe claimed the deal’s failure was the result of having “no clear path” for antitrust approvals in Europe and the UK."