With only 32 days until Election Day, the uncertainty surrounding the U.S. political landscape seems ever evolving. Developments such as the recent Presidential and VP debates have offered clues as to what businesses can expect from both campaigns, but one thing is clear – companies must be prepared to navigate potential reputational risks and risks to business around the issues that are at the forefront of this year’s election cycle.
To help corporate leaders prepare for this challenging landscape ahead, Sloane’s Special Situations team published a white paper that outlines immediate considerations for U.S. businesses, uncertainties in the marketplace, and key expectations as the election draws near.
Regardless of the election outcome, there are a few key areas that will play a decisive role in shaping corporate strategies over the next few months:
Regulatory environment and implications for M&A:
- Businesses are increasingly cautious in pursuing larger-scale deals due to the lack of clarity around future antitrust enforcement, as well as a shifting interest rate environment. We anticipate an uptick in deal-making after the election, once regulatory frameworks become clearer, but expect a challenging environment for any deals that involve major incumbent players in sectors such as technology or healthcare.
Inflation and rising labor costs:
- The inflationary environment remains a significant concern for businesses, even as inflation continues to cool down. Rising labor costs, driven by a persistently tight job market, are also continuing to squeeze profitability in various sectors. Businesses are monitoring macroeconomic conditions closely, knowing that the Fed’s moves over the next several months will be critical in shaping the economic landscape.
Hot button social and geopolitical issues:
- The 2024 election occurs in a context of heightened geopolitical tensions, and corporations are preparing for potential civil unrest tied to key political moments in the U.S. and abroad.
Sloane works with our clients to identify pertinent risks, prepare for likely scenarios before they arise, and navigate developments that have the potential to impact the business. In times of political, social and economic unpredictability, companies and executives need a clear and consistent plan and message. Sloane & Company is here to help you achieve those objectives, tailored to the needs of your business and stakeholders.
You can read our full piece on the 2024 U.S. election cycle here.