Upcoming Deal Trends

Despite the global slowdown in economic growth and the high interest rates that have put pressure on dealmaking until 2022 Many companies continue to think of M&A as a crucial route towards growth. Our latest North American CFO Signals study found that nearly half of respondents believed that between 1to 10 percent of their company’s growth in revenue could be attributable to M&A deals.

Although a range of challenges in the industry have slowed deal activity since peaking mid-2022 The recent stabilization of interest rates and inflation is a positive sign that the worst may be over. This, along with renewed confidence in the US economic system and easing of fears of a potential recession, should encourage more companies to consider strategic deals this year.

We anticipate that the upcoming year will be an active one for M&A across a wide variety of sectors. Industrial companies will remain a top target, particularly for acquisitions aimed at innovative technologies such as EVs, and cloud solutions. We also expect the energy transition to accelerate, and businesses in this sector are likely to seek additional assets and capabilities to help them succeed.

After a downturn in the tech industry in 2022 we are expecting an increase in 2024 because artificial intelligence (AI) and its associated applications, like generative AI, capture the attention of businesses, investors and the general public. In addition, the healthcare sector is a constant area of M&A as investors and companies race to bring niche medtech assets to the market.

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