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After a high-water mark in 2021, a year when buyers often needed to find ways to sweeten their bids in a very competitive M&A landscape, RWI has been purchased on fewer deals each year. A few years later, deal parties are experiencing the effects of lax diligence (e.g., What the Data Says Fewer deals today use RWI.
We stay close to our corporate clients, of course, and spend a lot of time with lawfirms as well. And so -- but bid really is the primary driver. We do have some bid headwinds as well, but we're planning on that to persist throughout the full year. So it's an important capability set that we bring to our clients.
But yeah, then I went to Wachtel afterward because it, it seemed like, because like, you know, you’re, you’re a law student and you don’t know what a lawfirm is. And then like you can spend your second year summer at a lawfirm. And so you end the summer knowing what a lawfirm is.
And Goldman was the size of a lawfirm back then. And I mean, it was literally like the size of a lawfirm, not a giant global institution. We spent weeks, night and day, studying it, decided it wasn’t a good deal, decided not to bid, which I’m fine with. RITHOLTZ: Right.
In terms of value, the inflated bids resulting from the blind auction process that included unrealistic buyers don't represent a meaningful proxy for real valuation and neither do the stand-alone price targets coming from research firms pandering to the arts. And what more do you need to complete in terms of duediligence or design.
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