Piper Sandler's Jimmy Dunne on remembering 9/11, M&A outlook and business of golf

Key Concepts:

• 9/11 Remembrance
• M&A Activity in Financials
• Regulatory Haze
• Margin Compression
• CEO Age
• Technology Adoption
• Stock Deals
• PGA Tour and LIV Golf
• Troon Golf
• AIG Board
• Chime Board
• Notre Dame Board

9/11 Reflections:

• Jimmy Dunn reflects on the somber day of 9/11, mentioning the loss of colleagues in the South Tower.
• He appreciates the remembrance efforts and acknowledges the impact on those directly affected, emphasizing that for many New Yorkers, the memory is a daily occurrence.
• He notes the willingness of younger generations to understand and learn about the event.

M&A Activity in Financials:

• M&A activity in the financial sector has been stagnant for about five years due to regulatory hurdles and a perceived negative attitude from regulators.
• The regulatory environment has eased, leading to increased discussions and willingness to engage in deals.
• The firm has been involved in approximately 20 deals worth around $15 billion, indicating a substantial increase in activity (30-40% up).
• Drivers for M&A include margin compression, aging CEOs, and the need for technological upgrades.
• Companies lacking the capital or expertise to invest in technology may seek to be acquired by those who do.

Stock Deals and Valuation:

• Stock deals are framed as buying another company at a discount rather than paying a premium.
• The strategy involves identifying a desirable company, negotiating a favorable exchange ratio, and gaining access to its stock.

PGA Tour and LIV Golf:

• Jimmy Dunn resigned from his position related to the PGA Tour, stating he was "superfluous."
• He believes the PGA Tour is currently in good shape and operating as desired.
• He suggests that the opportunity to reach a deal between the PGA Tour and LIV Golf may have passed, specifically before the British Open in 2023.
• He notes that initial attempts to settle lawsuits and begin discussions were not well-received.
• He doesn't see any progress being made currently, but maybe that is how it should be.

Other Board Involvements:

• Jimmy Dunn is involved with Troon Golf, bringing a different perspective to the company.
• He serves on the AIG board, where he learns from the CEO but considers himself "useless" due to the company's strong performance.
• He is also on the Chime board, which recently went public, and the Notre Dame board.

Conclusion:

The interview covers a range of topics, from the somber remembrance of 9/11 to the dynamics of M&A activity in the financial sector and the ongoing situation with the PGA Tour and LIV Golf. Jimmy Dunn provides insights into the factors driving M&A, the importance of technology adoption, and his perspectives on the golf industry. He also touches on his involvement with various boards, highlighting his diverse experiences and contributions.