PwC
Jeremy Fago is US Power and Utilities and Deals Leader at PwC.
2022 brought the highest inflation rates in forty years, with predictions of a recession in 2023, so some storm clouds are indeed hanging over the economy. But the energy and utilities industry strides forward in its services to the public, ever reliably.
But what about utilities' merger and acquisition activities? This is the time of year that Public Utilities Fortnightly brings out reader favorite, and M&A expert Jeremy Fago, to decipher what effect this all might have.
Not all is lost according to Fago, as while he notes there is uncertainty, he explains how to translate that into something positive. Read on to find out the latest.
PUF's Steve Mitnick: For M&A in the energy and utility space, can you give an overview as to where we're going into 2023?
Jeremy Fago: I'd say the overall outlook is good, but it's a bit mixed in the near-term. There's some uncertainty out there across the board right now. I think everybody's struggling with where things will land in 2023 with respect to the overall economy in general, such as inflation, interest rates, and recession risks.
The Fed has signaled that rate increases may not be as significant with each move now, and they demonstrated that in the last session, but they also said those increases are going to continue and that rates are probably going to stay high for a bit.