Financing Expert Alec Sohmer Affirms Government Shutdown Slowed Influx of Corporate Mergers

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In response to an article published by USA Today, financing expert Alec Sohmer discusses the how the government shutdown affected the corporate merger boom this year.

Financing expert Alec Sohmer comments on an article published by USA Today on October 9th regarding how the government shutdown impacted the corporate merger boom this year.

According to the USA Today article titled “Shutdown could stall corporate merger bonanza,” the steady increase of corporate mergers and acquisitions this year has already been affected by the government shutdown. The government shutdown forced the suspension of funding, and many fear that the agencies that approve big corporate deals could slow their processes or close all together due to disruptions in money flow. The article says the slowing of M&As could pose significant threats to the stock market, as well as cripple many companies trying to climb out of financial failure.

In the article, Amanda Levin of Mergermarket says, "We had a huge M&A comeback at the start of the year. Now with the government shutdown, it's the last thing that M&A needed."

Alec Sohmer, a financing specialist and founder of Plymouth Rock Capital, says while corporate mergers were definitely affected, the shutdown did not seriously hinder the approval process. He says investors and companies still need to be weary of the looming uncertainty of repercussions after the decision to raise the debt ceiling for a few extra months. “The threat really has not dissipated yet," he says. "Disturbances in funding to agencies like the Federal Trade Commission and the Department of Justice could severely hinder the speed of the M&A approval process,” he says. “That could, in turn, discourage many companies from making the decision to merge or acquire new businesses out of fear of losing valuable time and money.”

Alec Sohmer, a strategic financing leader and co-founder of Plymouth Rock Capital, has 20 years of Board-level experience. He has served in many interim management positions for businesses requiring significant turnaround or restructuring. He is able to increase revenue streams by utilizing a variety of line management techniques. In his two decades of experience, he has dramatically increased revenues of businesses by identifying untapped markets.

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