“People Will Perceive a Return to Normalcy” With Fed’s Rate Cut, Tracy Belton Tells Law360

Tracy Belton, co-chair of the firm’s global Mergers & Acquisitions practice, was recently quoted in the Law360 article, “Fed's Surprise Rate Cut Gives M&A Markets Needed Relief.”

Since cuts will ease costs of acquisition debt for dealmakers, “private equity will come out of the gate hot,” because buyers who rely the most on leverage — such as private equity firms — will almost immediately find relief, Belton said. She added that “because it's so close to the fourth quarter, I'm thinking people will perceive a return to normalcy and that will open floodgates,” across industries.

As consumers gradually increase their spending, Belton noted, corporate entities, retail operations, and others are likely to accumulate more cash that can presumably fund M&A. “If you have an easier access to financing, you increase the number and type of buyers,” she said.

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