Upcoming Deal Trends

Many companies view M&A transactions as an important route to growth, even with the global economic slowdown. The high interest rates will continue to pressure deals until 2022. In fact, our most recent North American CFO Signals survey showed that nearly half of respondents predicted that between 1 percent and 10% of their company’s growth this year to result from M&A transactions.

Although a number of challenges in the industry have slowed deal activity since peaking mid-2022 the recent stability of interest http://thisdataroom.com/why-choose-virtual-data-room-for-bankruptcy-restructuring/ rates and inflation is a good sign that the worst may be over. This, in conjunction with the increased confidence in the US economy and the easing of fears of a recession, should encourage more companies to pursue strategic deals during this year.

We believe that the coming year will be a busy year for M&A across a broad range of industries. The industrial sector is likely to remain a top priority, especially for acquisitions targeting innovative technologies such as EVs and cloud-based solutions. We also anticipate that the energy transition to accelerate and that companies operating in this sector may seek to acquire assets and capabilities that could assist them in achieving their goals.

After a major downturn for the tech industry in 2022 we anticipate a rebound in 2024, as artificial intelligence (AI) and its related applications, such as generative AI, catch the attention of investors, businesses and the general public. In addition the healthcare sector remains a major subject of M&A as investors and companies are racing to bring niche medical technology assets to the market.