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Phoenix eyes semis rubber match against Magnolia

PHEONIX FUEL MASTERS - PBA.PH

Game Wednesday
Mall of Asia (MOA) Arena
8 p.m. — Magnolia vs Phoenix
*Magnolia leads series, 2-1

EVEN with its youth-laden crew, Phoenix has shown its mettle in handling pressure-packed do-or-die situations.

The Fuel Masters put this on display by overcoming a more playoff-experienced Meralco in their quarterfinal sudden death, 88-84, to stretch their “fairytale” run in the PBA Commissioner’s Cup.

Playoffs regular Magnolia then buried them to a 0-2 hole in the race-to-three semis but instead of folding, the Phoenix Fuel Masters took it head-on and hammered a 103-85 come-from-behind romp in Game 3.

Still in a life-or-death predicament, Jamike Jarin’s spirited charges have to do it a third time in tonight’s Game 4 if they want to draw level with the Hotshots and force one last duel the right to face early finalist San Miguel Beer.

“These games (quarterfinal KO and Game 3) provided us with a lot of experience, I guess,” said Phoenix veteran Jason Perkins.

After bungling winnable situations in the first two games, Mr. Perkins and Co. learned their lessons and did the right things at the right moments to make it 2-1 Friday night.

Adding to the big boost in morale and confidence was the fact that Phoenix trailed by as many as 21 but turned things completely around and beat Magnolia by 18.

“We don’t look at the score when we play. We’re just out there trying our best every possession, starting with our offense, getting back on defense, and continuing as many stops as we can get,” he said.

“Our guys are definitely resilient and I’m really proud of everyone for working hard and sticking to it, and sticking together.”

That attitude, and the hard lessons learned from previous defeats, should serve them well when they attempt an encore in the 8 p.m. tiff at the MOA Arena.

“We know what to do in the endgame,” said Mr. Perkins. “We just need to execute, get organized, rebound, and play defense.”

Expect Magnolia, a proud team with championship pedigree and post-season experience, to come in with a similarly high sense of urgency and purpose as it seeks to follow the Beermen, 3-0 winner of ousted champ Ginebra, in the best-of-seven finale. — Olmin Leyba

Cone hopeful Brownlee will be cleared to rejoin Gilas Pilipinas

JUSTIN BROWNLEE - FIBA.BASKETBALL

COACH Tim Cone is hopeful Justin Brownlee will be cleared to rejoin Gilas Pilipinas in time for next month’s first assignments under his fresh tenure.

Even while they await Mr. Brownlee’s reinstatement after his suspension over a doping case in the Asian Games, Mr. Cone has tapped the three-time PBA Best Import to reinforce the 12-man core he assembled for the February kickoff window of FIBA Asia Cup Qualifiers as well as those that come after.

“Justin Brownlee’s going to be our naturalized player if everything works out with FIBA,” Mr. Cone, who was appointed to the post Monday, said as he attended the PSA Awards Night at the Diamond Hotel.

“We’re hoping their (FIBA’s) decision will come down sometime this week and that it will hopefully free him up for the window on the 22nd,” he added, referring to Gilas’ opening duel with Hong Kong on the road which will be followed by a home showdown with Chinese-Taipei on Feb. 25.

Mr. Brownlee tested positive for a cannabis compound after Gilas’ celebrated gold medal win in the Asiad last Oct. 6. This effectively forced him out of the Gin Kings’ title defense and potentially the Nationals coming campaigns, pending expiration of the still-unknown period of suspension.

In FIBA’s latest penalty on cannabis use, USA’s Jordan Bell was slapped a three-month suspension for testing positive in the FIBA Americas World Cup qualifiers that expired last Aug. 23.

Under Mr. Cone’s war plan, Mr. Brownlee, PBA players Scottie Thompson, Chris Newsome, Calvin Oftana, CJ Perez, Jamie Malonzo and June Mar Fajardo, Japan-based Dwight Ramos, AJ Edu, Kai Sotto and Carl Tamayo and collegiate star Kevin Quiambao will assemble first on Feb. 15 for the Hong Kong gig.

Mr. Edu, though, will miss this one due to knee injury but he’s expected to be good to go for the second window in April.

The “Gilas 12” will continue to train and play as a unit in all the other international competitions for the next four years, be it FIBA tournaments, SEA Games or Asian Games.

“We want to keep this team intact because everytime we play, we either will grow from success or failure. We’ll have kind of like a PBA or NBA or B-League team, where you keep a team together as much as you can and you try to get it to learn. Eventually you’ll grow it,” he said.

“We feel like each window will prepare us for the next window. And the idea is after three or four years of doing all these windows together and keeping the continuity going and having the same system, the same players should get to know each other better and better that they’ll reach their full potential by year three or year four.”

Mr. Cone is taking the reins on a long-term basis after previously accepting the job just for the Hangzhou conclave last September. Prior to that, he called the shots and steered the Pinoy dribblers to gold in the SEA Games at home and bronze in the 1998 Asiad in Thailand.

“I’m incredibly honored to be the holder of this position, it’s such a sacred position. We’ll try to develop a system in which we can satisfy all stakeholders and keep everybody moving in one direction,” he said. — Olmin Leyba

Quitevis to play out his final year with Ateneo Blue Eagles

ATENEO de Manila University will have its two co-captains back in the Blue Eagles’ nest for one last flight.

After Chris Koon’s earlier decision, Sean Quitevis announced his decision to play out his final year in the coming UAAP Season 87 as the Blue Eagles seek redemption after a rare early exit.

“One last fight,” said Mr. Quitevis in a short statement on his social media.

Messrs. Koon and Quitevis served as co-captains last season, a tough task that came at a time of Ateneo’s transition to a new era without long-time anchor Ange Kouame.

Now that they opted to return for one final year, the Blue Eagles have stabilized their backcourt rotation that now includes top high school cager and CESAFI MVP Jared Bahay, from Sacred Heart School-Ateneo de Cebu, who is expected to man the point.

Ateneo is tipped to get out flying and swinging in Season 87 after seeing its feat of sixth straight finals appearances under coach Tab Baldwin come to an abrupt end in the Final Four.

Due to a shaky campaign all season long, Ateneo needed to figure in a knockout playoff against Adamson just to get into the semifinals, where they were booted out by the University of the Philippines.

Although without one-and-done reinforcement Joseph Obasa and forward Kai Ballungay, who decided to go pro, the Blue Eagles promise to work their way to the top anew even against a stacked opposition.

Expected to stand in their way are perennial rivals University of the Philippines, which just scooped up Mythical Five member Rey Remogat from the University of the East for next season, and reigning champion De La Salle University led by Kevin Quiambao, who previously decided to return for one more season despite getting a bevy international offers. — John Bryan Ulanday

Cignal HD Spikers acquire top player Bryan Bagunas

THE CIGNALl HD Spikers acquired the country’s top player Bryan Bagunas and a slew of talented young blood as part of its major retooling in the Spikers’ Turf unfurling March.

“I’m excited to begin this new chapter of my career with the Cignal HD Spikers,” said Bagunas, who is still playing for the Taichung-based Win Streak in Taiwan.

The HD Spikers, now on their 10th year as a club team, have also tapped Ron Rosales, Giles Torres, Madz Gampong, Nas Gwaza, Cian Silang, and libero Vince Lorenzo to further beef their roster that included former Spikers’ Turf MVP Joshua Umandal, Alfred Valbuena, EJ Casaña, Lloyd Josafat, and newly named team captains Wendel Miguel and JP Bugaoan.

Mr. Bagunas’ arrival instantly filled the massive void left by Marck Espejo, who transferred to a Tai Bundit-coached Rebisco more than a week ago.

With men’s volleyball continuing to rise — with new teams, new players, and new competition — Cignal is prepared to level up their game and remain on top of the standings, finishing every conference as a champion.

“This 2024, we’re coming back with a renewed squad. We are grateful to Bryan (Bagunas) that he signed with us, and also all our new bloods who will bring in their effort, energy, and lessons to the team. Hopefully, we can reach our goals in each tournament because for sure we will fight for every point with every game we play,” said Cignal men’s head coach Dexter Clamor.

The Cignal men’s spikers are the defending champions of the upcoming Spikers’ Turf Open Conference, having won last March against the defunct squad AMC Cotabato before finishing as the 1st runner-up in the recently concluded Invitational Conference last December. — Joey Villar

Howard says grateful to represent Philippines in international stage

DWIGHT HOWARD — NBA.COM FILE PHOTO

GRIZZELED NBA veteran Dwight Howard paid gratitude to the Philippines for giving him a golden opportunity to strut his stuff anew on the international stage with Strong Group Athletics.

Albeit Strong Group fell short of achieving its championship goal, Mr. Howard cherished the experience with the squad in a commendable runner-up finish behind Al Riyadi in the 33rd Dubai International Basketball Championship.

“We came together for two weeks, only had a few practices together, and fought all the way to the championship,” said the former NBA three-time Defensive of the Player awardee.

“Charles Tiu is a great coach and the Philippines is a great country. Thank you all for having me and allowing me to represent your country.”

The 38-year-old Mr. Howard, who had previous visits to the country, played for a Philippine team for the first time with hopes of helping it bring home the Dubai crown.

Proving that he still has a lot left in the tank, the seasoned anchor normed 17.4 points and 10.3 rebounds through eight games that ended in a 77-74 finale heartbreaker against the Lebanese bets.

Mr. Howard teamed up with UAAP MVP and now Gilas Pilipinas returnee Kevin Quiambao of De La Salle University, who was named to the All-Tournament Team, for a formidable duo that led Strong Group Athletics to the near-perfect championship run.

Mr. Tiu, whose coaching staff included Brian Goorjian, Topex Robinson and TY Tang, could not be prouder of Messrs. Howard, Quiambao and his entire wards’ tall stand against the top clubs in the Middle East despite not bringing home the cup.

The team owned by Jacob and Frank Lao also thanked the massive support from all the Filipinos in Dubai who made them feel like champions — and at home.

“(We’re) back in Manila. We’re still hurting from being on the wrong end of a buzzer-beater in our championship game. We’re sorry we couldn’t bring home the chip but we hope we were able to captivate and put on a good show,” said Mr. Tiu.

“We fought until the end despite battling injuries but I guess it wasn’t meant to be. We just want to thank all the Filipinos in Dubai who constantly came to our games and cheered their hearts out and supported the team. Thank you for all the well wishes! This is just the beginning for the Strong Group and there will be more to come.” — John Bryan Ulanday

Niners vs Chiefs Super Bowl LVIII tickets reach record prices

WITHthe National Football League’s (NFL) title game in Las Vegas for the first time, combined with the Taylor Swift effect on the Kansas City Chiefs’ side and the San Francisco 49ers’ West Coast fandom, ticket prices are a record level for Super Bowl LVIII.

According to ticket aggregator TicketIQ, the average secondary ticket market list pricing for the Feb. 11 game at Allegiant Stadium has reached a record $10,752. Tickets for Super Bowl LV in Tampa, Florida, went for a higher number but the pandemic limited capacity to just 25,000. Average prices for Super Bowl LVIII were at a record $9,815 on online marketplace TickPick, an increase of 70 percent over last year’s title game, Front Office Sports reported.

Making their fourth Super Bowl appearance in five seasons, the Chiefs have been a popular team for years. Support for the Chiefs has been bolstered by Ms. Swift’s relationship with star tight end Travis Kelce, which has the pop star’s fans swooning from coast to coast.

The 49ers, who are aiming to join the New England Patriots and Pittsburgh Steelers with the most Super Bowl wins (six), are highly popular on social media. It also doesn’t hurt that San Francisco is loaded with offensive stars — Christian McCaffrey, George Kittle, Deebo Samuel, Brandon Aiyuk and Brock Purdy.

Just to get into this Super Bowl, it’ll cost fans more than $7,000, one of the highest non-COVID figures for the annual event.

However, had the Detroit Lions prevailed over the 49ers in the NFC title game, the ticket prices likely would’ve skyrocketed even further. — Reuters

Holders Qatar knock Palestine out of Asian Cup to secure last-eight spot

AL KHOR, Qatar — Defending champions Qatar survived a scare to beat Palestine 2-1 and advance to the Asian Cup quarter-finals thanks to goals from Hassan Al-Haydos and Akram Afif at Al Bayt Stadium on Monday.

Despite Qatar starting as firm favorites on home turf in front of nearly 64,000 fans, it was an industrious Palestine side who looked more promising in attack in the first half and they were rewarded for their perseverance in the 37th minute.

Palestine stole the ball off Qatar high up the pitch before Oday Dabbagh embarked on a solo run and shot past keeper Meshaal Barsham into the bottom corner for his third goal of the tournament and the country’s first ever in the knockout stage.

But Qatar skipper Al-Haydos equalized with the last kick of the half when he latched onto Afif’s low cross from a corner and fired it home through two defenders and keeper Rami Hamadeh.

Qatar then took the lead minutes after the break when Almoez Ali was brought down by a late sliding tackle from Mohammed Saleh and Afif stepped up to score his fourth goal in as many games at the tournament.

Palestine had a few chances to equalise but lacked the finishing touch as Qatar held on. They will return to Al Bayt for a quarter-final against either Uzbekistan or Thailand. — Reuters

Line dancing: Big money behind Chiefs shifts SB LVIII odds

HEAVY early money backing the Kansas City Chiefs led to multiple changes in the betting line within 24 hours of the matchup for Super Bowl LVIII being set.

The San Francisco 49ers opened as 2.0-point favorites shortly after storming from behind to beat the Detroit Lions in the NFC Championship Game on Sunday night. However, the line dipped as low as 1.0 points at sportsbooks including DraftKings and BetMGM, where the Chiefs had been backed by 78 percent of the spread-line money as of Monday morning.

The line has since shifted back to San Francisco being favored by 1.5 points at both sportsbooks, who both have the Over/Under points total at 47.5 points. The early money at BetMGM has the Over being backed by 90 percent of the money wagered on the market.

Sportsbooks were widely pulling for the Lions to upset the 49ers, who are the biggest Super Bowl liability at many sportsbooks, and that remains the case ahead of facing the Chiefs.

“Even though early action is on the Chiefs as underdogs, the sportsbook is cheering for a Kansas City victory,” BetMGM senior trading manager Tristan David said.

Chiefs quarterback Patrick Mahomes is the early favorite to claim his third Super Bowl MVP award. The MVP of Super Bowls LIV and LVII, Mahomes is +120 to claim No. 3 at BetMGM, where he opened the season at +1000. 49ers quarterback Brock Purdy is second at +220, followed by teammate Christian McCaffrey at +450.

Mahomes has drawn 20 percent of the MVP money at DraftKings, where he is also +120. Teammate Travis Kelce has far longer odds at +1200, but the tight end has been the second most popular early pick with 14 percent of the money backing him.

The most popular player prop at DraftKings has been McCaffrey at -155 to lead all players in combined rushing and receiving yards. He has also been the most popular Anytime Touchdown play despite -215 odds. — Reuters

Timberwolves top Thunder in battle for West lead

ANTHONY EDWARDS scored 27 points to lead the Minnesota Timberwolves to a 107-101 win over the host Oklahoma City Thunder on Monday.

The victory put the Timberwolves a game up on the Thunder for the top record in the Western Conference and gave Minnesota a split in the teams’ four-game season series.

The Timberwolves had struggled in the fourth quarter recently, but Minnesota dominated late Monday, outscoring Oklahoma City 34-24 in the final period to take control.

Jaden McDaniels’ corner 3-pointer with 2:32 remaining put the Timberwolves up for good, 99-97. After Minnesota’s Karl-Anthony Towns grabbed the rebound from Chet Holmgren’s missed 3-pointer at the other end, Edwards drove home an emphatic dunk through contact at the rim to solidify the lead.

Towns wound up with 21 points and 10 rebounds for Minnesota, while Rudy Gobert had 12 points and 17 rebounds.

Minnesota outscored the Thunder 46-34 in the paint overall and went 6 of 10 from 3-point range in the fourth quarter.

Shai Gilgeous-Alexander led the Thunder with 37 points, eight assists and seven rebounds.

After Oklahoma City’s win over Minnesota on Jan. 20, Edwards said it was hard to beat the Thunder with the calls Gilgeous-Alexander got. On Monday, Gilgeous-Alexander shot 15 of 16 from the free-throw line.

Jalen Williams added 20 points for Oklahoma City. and Josh Giddey scored 13. Holmgren had four points and three blocks.

Playing their second game in as many nights, the Thunder started showing apparent signs of fatigue in the second half.

Minnesota scored the first seven points of the third quarter, ultimately reeling off a 13-5 run to go up 62-52.

Edwards scored five of the Timberwolves’ first seven in the half.

Oklahoma City quickly responded with a 16-2 run to take a 68-64 lead.

Gilgeous-Alexander had nine points and two assists during the stretch to carry the Thunder.

The loss snapped a seven-game home winning streak for the Thunder.

The Timberwolves were without Mike Conley for the fourth time in five games. Conley has missed the past two games due to left hamstring soreness. — Reuters

Doc Rivers on Bucks

The National Basketball Association championship is not claimed on a sprint, so yesterday’s loss did not necessarily handicap the Bucks’ chances. There is, after all, still half the season left to negotiate. Nonetheless, there was no question that they wanted to emerge victorious for reasons other than bettering their second-best record in the East. To begin with, the outing was Doc Rivers’ first as head coach for the green and white; a triumph would have sent the right signals following the unceremonious firing of Adrian Griffin. There was also the not inconsequential matter of flexing their muscles against the highly regarded Nuggets.

Given that the Bucks wound up on the wrong end of the final score, it’s fair to contend that they failed on both counts. Never mind that they played at Ball Arena, whose high altitude combined with 19,801 diehard fans compounded the challenge. Perhaps owing to Rivers’ predilections, they displayed a much slower pace throughout the set-to, and, as a result, shot poorly from the field. Outside of veterans Giannis Antetokounmpo, Khris Middleton, and Brook Lopez, no player who took more than three shots managed to see half get to the bottom of the net.

To be sure, Rivers was brought in precisely to correct the Bucks’ alarming swoon on defense while maximizing their offensive prowess. From being among the best in limiting opponents from scoring under Mike Budenholzer, they turned into one of the worst with Griffin at the helm. Their new bench tactician is expected to leverage his experience and savvy in fostering smooth interpersonal relationships, particularly with high-maintenance stars, in order to coax the best out of them on both ends of the court.

There were no happy campers in the Bucks’ locker room following the setback. While the outcome may have reflected the status of the Nuggets as pregame favorites, they clearly thought otherwise. The good news is that they need not wait long for payback under more favorable terms. They meet the defending titleholders anew in two weeks, and on home turf. By that time, they figure to be more attuned to Rivers’ system and style — and in prime position to turn their fortunes around.

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

US vows ‘all necessary actions’ after drone attack kills 3 soldiers

STOCK PHOTO | Image from Pixabay

GAZA/DOHA/WASHINGTON – The United States vowed to take “all necessary actions” to defend American forces after a drone attack killed three U.S. troops in Jordan, while Qatar said it hoped U.S. retaliation would not damage regional security or undercut progress toward a new Gaza hostage-release deal. 

Sunday’s attack by Iran-backed militants was the first deadly strike against U.S. troops since the Israel-Hamas war erupted in October and marks a major escalation in tensions that have engulfed the Middle East.  

White House National Security spokesman John Kirby said on Monday the United States did not want a wider war with Iran or in the region, “but we got to do what we have to do.” 

Iran has denied any role. Biden has previously ordered retaliatory attacks on Iran-backed groups but has so far stopped short of hitting Iran directly. 

“Have no doubt – we will hold all those responsible to account at a time and in a manner of our choosing,” Biden said on Sunday, while Austin said at the Pentagon on Monday:  

“The president and I will not tolerate attacks on U.S. forces, and we will take all necessary actions to defend the U.S. and our troops.” 

In Gaza, Israel launched an assault on the Hamas-ruled enclave’s biggest city. Residents of Gaza City said air strikes killed and wounded many people, while tanks shelled eastern areas and naval vessels fired at western beachfront areas. 

Israel said late last year it had largely completed operations in northern Gaza and has recently aimed the brunt of its might at southern Gaza. The renewed push in Gaza City, where residents reported fierce gun battles near the main Al-Shifa Hospital, suggested that the war was not going to plan. 

Biden’s administration is under pressure to respond to the drone attack firmly without triggering a wider war. It has also been trying to facilitate the release by Hamas, which rules Gaza, of more than 100 hostages seized by the militants in their deadly Oct. 7 rampage into southern Israel. 

Qatari Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim al Thani told a Washington think tank he hoped U.S. retaliation would not undercut progress toward a new hostage release deal in talks last weekend. 

He said potential U.S. retaliation “will definitely have an impact on regional security and we hope things get contained.” 

CIA Director William Burns met Sheikh Mohammed, as well as the head of Israel’s Mossad intelligence service and the head of Egyptian intelligence, on Sunday in Paris for talks described as constructive by Israel, Qatar and the U.S., albeit with significant gaps remaining. 

U.S. Secretary of State Antony Blinken said the Paris talks raised hope that a Qatar-mediated negotiating process could resume. Before collapsing, the mechanism led to a week-long ceasefire agreement in November when Hamas freed around 100 hostages. 

A framework for a possible second deal developed in Paris “is a strong one and a compelling one that … offers hope that we can get back into this process,” he said at a news conference with NATO Secretary General Jens Stoltenberg. 

“Hamas will have to make its own decisions,” said Blinken, who declined to reveal details of the proposal. 

HAMAS SAYS ISRAEL MUST WITHDRAW
Hamas reiterated on Monday that Israel must halt its Gaza offensive and withdraw from the Gaza Strip before more hostages are freed. Israel says it will fight until Hamas is eradicated. 

According to Israel, some 1,200 people were killed and 253 abducted in the Oct. 7 attack, which sparked its war to eliminate Hamas. Israel has since unleashed a military campaign on Gaza that has flattened most of the Palestinian enclave and killed 26,637 people, according to Gaza health officials. 

Tensions have surged around the Middle East, with Yemen’s Iran-backed Houthi forces striking U.S. and other targets in the Red Sea in attacks that have disrupted global shipping. 

On Monday, Hamas fired its first volley of rockets for weeks into Israeli cities, proving it still had the capability to launch them after nearly four months of war. 

Gazans say the violence has made a mockery of a World Court ruling last week calling on Israel to do more to help civilians. 

Israel ordered new evacuations of the most populated areas of Gaza City, but people said communications blackouts meant many would miss the alerts. Israel says Hamas is responsible for the deaths of civilians because its fighters operate among them, which the fighters deny. 

People in the north have been grinding animal feed to make flour after flour, rice and sugar ran out, part of an aid crisis now potentially exacerbated by a withdrawal of support for the United Nations’ aid agency for Palestinian refugees, UNRWA. 

The United States and several other countries have suspended aid to the agency since Friday after Israel said some 190 UNRWA employees, including teachers, have doubled as Hamas or Islamic Jihad militants. Israel said some took part in the Oct. 7 Hamas attacks on Israel, which killed about 1,200 people. 

U.N. Secretary-General Antonio Guterres met the head of U.N. internal investigations to ensure an inquiry into the allegations “will be done swiftly and as efficiently as possible,” a U.N. spokesperson said. 

UNRWA, which says more than 150 of its staff have been killed since October and a million Palestinians are sheltering in its buildings, said it would have to end operations within a month if funding was not restored. It said it had promptly fired staff after being alerted to Israel’s allegations. – Reuters  

Generative AI seen as helping to identify M&A targets, Bain says 

DEAL makers are turning to artificial intelligence and generative AI tools to source data, screen targets and conduct due diligence at a time of heightened regulatory concerns around mergers and acquisitions, Bain & Co. said in its annual report on the industry released Tuesday. 

While only 16% out of a total of 306 M&A practitioners surveyed by the advisory firm said they have relied on generative AI for past deal making, 80% said they expect to deploy it in the coming three years, highlighting the scope for potential changes to how companies do deals. 

Both buyers and sellers will likely utilize generative AI, or self-learning models that can generate text, images and other content, said Suzanne Kumar, a vice president in Bain’s M&A practice and a co-author of the report.  

“The longer-term question is whether companies will also use Gen AI for decision making,” Kumar said, pointing to a strong appetite among companies to incorporate the new technology into their processes. 

Generative AI can pick up M&A targets that wouldn’t have been identified with traditional tools, flag deviations in contracts and help focus on problematic areas, the Bain report found. Technology, health care and finance companies are among the early adopters. “They tend to be larger companies with moderate M&A activity of three to five deals per year,” the firm said in its report. 

Still, respondents voiced concerns around the reliability of data supplied by generative AI, as well as the safety of the tools that are available in the market. 

PICKING UP
Bain said it expects deal making to pick up in 2024 following a 15% decline in total M&A to $3.2 trillion from the prior year, the lowest in a decade. Leveraged private equity- and venture capital-driven deals fell by 37% compared to 2022, while strategic M&A by corporate buyers including add-ons by PE-firms slowed by 6% from the prior year. 

High interest rates, mixed economic signals, geopolitical uncertainty and the lack of common ground between sellers and buyers were behind the decline, Kumar said. “It often seemed to be the only thing that buyers and sellers agreed on, that they couldn’t agree on a valuation,” she said. 

That has resulted in a backlog that is forecast to drive buying and selling of companies and assets in 2024, as private equity firms have held more than half of their portfolio businesses for more than four years. Following the slowdown in deal making in 2023, companies will likely take a hard look at their portfolio and consider divestitures, Kumar said. 

Strategic deal makers in particular are set to do more M&A as they traded at a median valuation of 10.1 times their earnings before interest, taxes, depreciation and amortization in 2023, near a 15-year low and down from 12.1 times in 2022. “Even on a historical basis, valuations are relatively low,” Kumar said, pointing to exceptions such as financial services, where valuations increased. 

A potential decline in interest rates, as outlined by the Federal Reserve in December when it penciled in 75 basis of cuts for 2024, also should help M&A. “When you are a chief financial officer, you have probably absorbed higher interest rates, and you see an opportunity to do deals at a lower price,” she said. 

Still, heightened regulatory uncertainty is seen to continue, forcing companies to stress test their planned deals, negotiate termination fees and waterproof their financing plans, she added. 

Companies in the first nine months of 2023 paid for 65% of deal values with cash, followed by 22% in stock, with the rest paid for with a combination of cash and stock. Compared with the first nine months of 2022, companies used slightly more stock to fund acquisitions. Bain said it doesn’t have data on how much of that cash was raised through debt. – Reuters