Upcoming Deal Trends

Many companies see M&A deals as a crucial way to grow, even in the face of a slowing global economy. High interest rates will continue to pressure deal-making until 2022. Our most recent North American CFO Signals study showed that nearly half the respondents believed that between 1to 10 percent of their company’s revenue growth could be due to M&A deals.

Although a number of industry-related challenges have slowed deal activity since peaking mid-2022 the recent stability of interest rates and inflation is a good sign that the worst may be over. This, along with the increased take a look at the site here confidence in the US economic system and easing of concerns about a possible recession, should hopefully spur more companies to consider strategic deals during this year.

In the end, we expect the year ahead to be an active one for M&A across a range of sectors. The industrial sector will remain a top target, particularly for acquisitions focused on cutting-edge technologies such as EVs, and cloud solutions. We also anticipate the energy transformation to accelerate, and companies in this sector will likely be looking to acquire additional assets and capabilities to enable them to succeed.

After a major downturn for the tech industry in 2022, we are expecting a rebound in 2024, as artificial intelligence (AI) and its associated applications, like generative AI, capture the interest of businesses, investors and the general public. The healthcare industry is an important focus for M&A, as both companies and investors vie to bring medical devices that are niche to market.