Upcoming Deal Trends

Many companies view M&A deals as a crucial path to growth regardless of the global slowdown in economic growth. High interest rates will continue to pressure dealmaking through 2022. Our most recent North American CFO Signals study found that nearly half of respondents believed between 10% and 1% of their company’s growth in revenue could be attributable to M&A deals.

Although a number of challenges in the industry have slowed deals since peaking in mid-2022 The recent stabilization of inflation and interest rates is a positive indication that the worst may be over. This, along with the rising confidence in the US economic system and the ease of fears of a recession, will hopefully encourage more companies to look into strategic deals during this year.

We anticipate that the upcoming year will be one of the busiest for M&A across a broad range of sectors. The industrial sector is expected to remain a prime target, especially for acquisitions targeting innovative technologies such as electric vehicles and cloud-based solutions. We also anticipate the energy transformation to accelerate, and businesses in this sector are likely to seek additional assets and capabilities that will help them succeed.

After a severe downturn for the tech industry in 2022 we anticipate growth in 2024 as artificial intelligence (AI) and its associated applications, like generative AI, grab the interest of businesses, investors, and the public. The healthcare sector is a major area of focus for http://thisdataroom.com/virtual-data-room-tool-for-legal-professionals/ M&A, as companies and investors compete to bring niche medtech products to the market.