Upcoming Deal Trends

Despite the global slowdown in economic growth and high interest rates that put the pressure on deals through 2022, many companies continue to consider M&A as a crucial route to growth. In fact, our latest North American CFO Signals survey found that nearly half of respondents predicted that between 1% and 10 percent of their business’s growth this year to result from M&A transactions.

The recent improvement in inflation and interest rates is a sign that the worst might be over. This, together more tips here with the renewed confidence in the US economy and the easing of concerns about a possible recession, should hopefully spur more companies to look into strategic deals in the coming year.

We believe that the coming year will be one of the busiest for M&A across a wide range of industries. The industrial sector will remain a top target, particularly for acquisitions focused on cutting-edge technologies such as EVs, and cloud solutions. We also expect the energy transition to accelerate and that companies in this sector may be looking to acquire assets and capabilities that could help them achieve success.

After a severe downturn for the tech industry in 2022, we anticipate growth in 2024 because artificial intelligence (AI) and its related applications, like generative AI, grab the attention of business owners, investors, and the public. The healthcare sector is a major focus for M&A as companies and investors compete to bring medical devices that are niche to the market.