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The era of corporate splits and carveouts at Wall Street: Is De-consolidation is the new growth mantra?

Higher equity multiples are being chased as corporates face pressure to extract value from strategic acquisitions amidst macroeconomic uncertainty, riskier exposures, and expensive credit. Jasper Colin's surveys found that over 40% of global corporate leaders anticipate a persistent severe recession in the coming quarters, with a third of them expecting a corporate divestiture decision by the end of 2024. In Q1'2023, divestiture transactions in the US saw a 15% Q-o-Q increase, driving overall activity in the US M&A market, which, conversely, experienced a 6% decline. Asia demonstrated the strongest "de-consolidation" sentiment, with a 120% Q-o-Q surge in divestiture activity in Q1 of 2023.



Read on as Jasper Colin's Market Watchdog screens reveal the ongoing developments into the thriving market for corporate divestiture and expert perspectives on how leaders are reassessing their strategic assets as they face mounting pressure from shareholders to enhance value and profits.

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