WEBVTT 00:00:00.500 --> 00:00:04.004 Understanding the outlook for M&A is important for any CEO, 00:00:04.004 --> 00:00:08.608 decision makers and corporations, private equity firms and investment banks. 00:00:08.608 --> 00:00:12.612 Let me introduce to you BCG's M&A Sentiment Index. 00:00:12.612 --> 00:00:16.383 This index gives a monthly update on how willing dealmakers are to engage in 00:00:16.383 --> 00:00:20.720 mergers and acquisitions and divestitures over the coming next six months. 00:00:20.720 --> 00:00:24.324 Ultimately, it's hand signaling where the market is heading. 00:00:24.324 --> 00:00:26.393 In the graph, we have the index number. 00:00:26.393 --> 00:00:31.131 Simply put, if it's over 100, it means that the activity will be higher than average. 00:00:31.131 --> 00:00:33.833 Below 100 means that it's subdued. 00:00:33.833 --> 00:00:36.603 The level of activity is one important way to look at the market, 00:00:36.603 --> 00:00:39.706 but you also need to consider the momentum. 00:00:39.706 --> 00:00:43.710 Our momentum gauge shows if the market is slowing, stable or accelerating, 00:00:43.710 --> 00:00:46.079 a clear signal of future direction. 00:00:47.080 --> 00:00:49.049 You can also use the interactive features 00:00:49.049 --> 00:00:54.287 to see the global picture, or glean insights by sector or by region. 00:00:54.287 --> 00:00:57.791 I'm sure you're wondering how this index is now calculated. 00:00:57.791 --> 00:01:01.061 We use 15 M&A drivers, such as business confidence 00:01:01.061 --> 00:01:03.263 and valuation levels and interest rates. 00:01:03.263 --> 00:01:04.898 And this is then combined with using 00:01:04.898 --> 00:01:09.002 AI to extract executive and investor sentiment towards M&A 00:01:09.002 --> 00:01:12.272 through things such as earnings call transcripts. 00:01:12.272 --> 00:01:14.874 Take a look at the latest index score, and we hope that 00:01:14.874 --> 00:01:18.078 this helps you to confidently navigate the changing M&A landscape.