Upcoming Deal Trends for 2024

The deal market in 2024 is likely to witness an increase in activity following the challenges of 2023. The market for deals in 2023 is likely to experience a revival from the challenges of 2023.

Deal-making will be hindered by a number factors. The slowdown in M&A is largely due capital restrictions. Rising interest rates have shifted the economic landscape and made it less appealing to invest in growth through acquisitions and new investments. This is particularly relevant to the US that account for an important portion of global deal value with two-thirds of the top 100 deals of 2021 featuring the US company as an offerder or the target.

The second reason is that increased scrutiny from regulators is limiting M&A. Antitrust, national security and other concerns are increasing the scrutiny of larger deals and hindering consolidation opportunities. The trend is expected to continue into 2024.

Third, the main focus of generative AI (GIA) will lead to more M&A to develop capabilities. Companies that don’t have the necessary skills or a time horizon to develop GIA capabilities internally will look to M&A to acquire these capabilities. Finaly, the environmental social and governance agenda is gaining traction with CEOs. More often, they are looking to increase the effectiveness of ESG initiatives through acquisitions that can help them achieve their earnings, growth, and valuation goals.

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