Perhaps it’s the mirth and enthusiasm of a new year—to say nothing of the eternal January optimism of investment bankers—but I’ve been reading that some of our brightest minds expect the M&A environment to rebound in 2023. I have a different view. And, naturally, it involves the instructive lesson of Elon Musk and Twitter, and ends with the instructive lesson of Elon and Tesla.
On January 12, Bank of America reports its 2022 earnings. Four days later, Morgan Stanley does the same thing. Why should anyone care? Because Morgan Stanley and BofA were the two lead banks that underwrote the $13 billion of Twitter’s senior secured debt to help finance Elon’s takeover of the company, which closed last October.
