Data from the PCA Index Featured in Associated Press About Trade War Chilling Mergers and Acquisitions in U.S.
An article in the Associated Press by Joyce Rosenburg cites findings from the Pepperdine Private Capital Access (PCA) Index and two industry groups, the International Business Broke Association and the M&A Source. The survey questioned 288 brokers and M&A advisers during the first three weeks of July. Approximately a quarter of the survey participants, who advise businesses valued at up to $2 million, said “one or more of their sellers have been affected by tariff issues, and nearly a third of those valued between $2 million and $5 million reported the same trend."
The toll of tariffs is impacting manufacturing businesses the hardest and export orders fell to their lowest since April 2009. Chad Moutray, chief economist of the National Association of Manufacturers stated “manufacturers are currently challenged by a softening global economy and trade uncertainties, so it should not be a surprise that the sector experienced such meager job growth.” Raw materials such as steel, components, and finished products from China have increased in price and exports to China have been damaged by the country’s retaliatory tariffs. Read more.