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Mergermarket: Western US has Combination of Innovation, Population and Capital for Strong 2019

February 11, 2019

Population growth, the emerging technology sector, and a number of other factors bode well for another strong year on the mergers and acquisitions front.

Firmwide co-chair of O’Melveny’s Corporate Department Warren Lazarow predicted that the biggest deals of 2019 will continue to be found in the tech space. Changes in tax law mean companies have more cash to fund potential deals.

In 2018, two of the biggest west coast deals touched the semiconductor space, Lazarow pointed out, including one of his own deals, representing Microsemi in its US $10 billion sale to Microchip Technology.

In many cases, smaller companies have been angling for these types of deals as well. “They see companies they think are inferior sold for good prices and they don't want to be the last one standing,” Lazarow said.