The deal market in 2024 is likely to see a return from the challenges of 2023. The 2023 deal market is likely to experience a revival after the difficulties of 2023.
However, several factors will continue to hinder deal-making. The slowdown in M&A is largely due capital constraints. The economic landscape has changed as a result of increasing interest rates, making it less attractive to invest in growth through acquisitions and new investment. This is particularly true for the US as it accounts for an important portion of the global deal value with two-thirds of the top 100 deals of 2021 featuring the US firm as either the bidder or as a the target.
The second reason is that http://thisdataroom.com/how-virtual-data-room-vdr-benefit-ma-deals/ increased scrutiny from regulators is stifling M&A. Concerns over antitrust, national security, and other issues are putting more scrutiny on larger deals and limiting the potential for industry consolidation. The trend is expected to continue until 2024.
Thirdly, the focus on generative AI (GIA) will trigger more capability-building M&A. M&A will be used by companies who do not have the time or skills to build GIA capabilities internally. Additionally, the environmental, social, and governance (ESG) agenda is continuing to gain traction with CEOs. They are looking to boost ESG initiatives by buying companies that will aid them in achieving their growth, earning, and valuation goals.
