Upcoming Deal Trends for 2024

最后更新于：2024-01-24 12:40:47

The deal market in 2024 is likely to recover from the challenges that the market faced in 2023. The market for deals in 2023 is likely to see a revival from the challenges of 2023.

However, several factors will hinder the process of making deals. The first reason for the slowdown in M&A activity is largely due to capital limitations. The economic environment has changed because of rising interest rates, making it less attractive to invest in growth through acquisitions and new investment. This is especially relevant for the US which drives a large portion of global deal valuations and with two-thirds of the top hundred deals of 2021 being either an US company or a target.

Second, increased scrutiny by regulators is stifling M&A. Antitrust, national security and other issues are causing the scrutiny of larger deals, and limiting consolidation opportunities. The trend is expected to continue through 2024.

Third, the increased focus on generative AI (GIA) will drive more capabilities-building M&A. M&A will be utilized by companies who do not have the resources or time to develop GIA capabilities internally. In addition, the environmental, social and governance (ESG) agenda is continuing to gain traction among CEOs. In the coming years, they will be looking to strengthen ESG initiatives through acquisitions that will allow them more tips here to achieve their growth, earnings and valuation goals.