Back in May we wrote that this is a difficult environment in which to get M&A transactions done. Bloomberg reports that more than $150 billion of M&A deal activity has been “scrapped or stalled” given the interest rate environment and economic backdrop. Our view is that the state of M&A deal activity will get worse before it gets better. Corporate executives will have less visibility and greater uncertainty over the next 12 months. Interest rates are poised to move higher. Thus, public company and private company valuation expectations need to come in. History teaches us that valuation expectations lag the fundamental reality, therefore it could be well over a year before the M&A market finds a natural equilibrium between would-be buyers and sellers.