In a career that has spanned more than 25 years and over 70 transactions worth more than $180 billion, William Blair’s Christina Bresani has come to understand the value of standing out—and embracing being different.

“In a sea of gray suits,” Bresani said, “be the woman in the red dress who everyone remembers.”

Bresani, managing director and head of corporate advisory, recently talked about how being herself has been an effective strategy throughout her career. She also discussed the unique nature and challenges of the M&A market of the past couple of years, the advantages of strategic acquirers in a high-interest-rate environment, and what private companies can learn from their public counterparts.

Client Focus (CF): You work with public companies of all shapes and sizes. What’s the sentiment among them about the state of the market as we wrap up the first quarter of 2024?
Christina Bresani (CB): I would say it’s “cautiously optimistic,” but that perspective varies depending on whom you ask. Some companies have strong cash flows and are in acquisition mode. Others are in need of capital and are trying to figure out how they can raise it. With close to 80% of transactions starting with an unsolicited bid, almost all companies are making sure they are prepared when, and if, that approach comes in.
CF: How are you seeing strategic acquirers be more competitive, particularly against private equity firms? How does the current interest rate environment play into decision-making?
CB: Strategics are certainly more competitive than they’ve been in the past. A lot of that has to do with an interest rate environment unlike anything we've recently encountered. Debt is just more expensive for private equity firms, even if that’s easing a bit. The other piece is that investment committees are more conservative at private equity firms than they were two years ago. Strategic buyers with access to capital and conviction around a particular target can “win” more easily now versus a couple of years ago.
CF: How are strategics changing their acquisition strategies given the anticipated interest rate cuts later this year?
CB: It’s important to understand how strategics think. They look for deals that make financial sense, but the top priority is finding transactions that make strategic sense. If a company identifies a target that fits the latter category, they aren’t going to hold off because they think interest rates will fall slightly in the future. Often, targets are sold in an auction environment; it becomes an issue of “If I want this, I need to move now,” especially if there’s competition. Without minimizing the financial engineering behind a deal, you don’t want to miss out on an acquisition while waiting for interest rates to move.
Christina Bresani
Christina Bresani, managing director, head of corporate advisory
CF: Looking at M&A more broadly, when in your career have you seen a market like the one we’ve dealt with for the past couple of years? What makes this one so unusual?
CB: I’ve been through two comparable bear markets, and what made this market different from tough ones in the past was the fact that things went south so quickly after such incredible highs in 2021. Across the industry, we went from getting deals done at a remarkably quick pace to not getting deals done at all and successful deals taking significantly longer. Now, a lot more time and effort go into getting deals done, with more boards and investment committees taking a more conservative approach. People are simply thinking more critically about transactions.
CF: How should leaders of private companies stay on top of trends in corporate boardrooms to capitalize on those trends for their own businesses?
CB: It’s all about maximizing value over the short- and long-term. Private companies have an advantage there because they’re not reporting quarterly earnings and have more leeway in making the right strategic move for the business instead of having to deliver in the next quarter. But they can definitely learn from how public companies operate, notably regarding rigorous reporting. That’s required for publics, but smart private companies do it, too—and they make sure the leadership team is regularly analyzing the reporting.
CF: An important topic to you is improving diversity in the banking industry and on public boards. What advice would you give to women interested in investment banking?
CB: You have to be yourself. It’s easy when you’re first starting out to try to be what you think you should be. What I’ve learned is I’m different from everybody else. I will never be like the person sitting next to me, so I might as well do it my own way. There’s nobody else who’s the same as me, and I have come to realize that is a real advantage. In a sea of grey suits, be the woman in the red dress who everybody remembers. Over time, I’ve found that resonates with clients because they want someone they can trust and who speaks their mind honestly.