Many companies view M&A transactions as a key path to growth even in the face of a slowing global economy. A high rate of interest will continue to put pressure on dealmaking through 2022. Our latest North American CFO Signals study revealed that a significant portion of respondents believed that between 1to 10 percent of their company’s revenue growth could be attributed to M&A deals.
The recent stabilization of inflation and rates of interest is a sign that the worst may be over. This, along with the renewed optimism in the US economic system and the dissipation of fears of a recession, should encourage more companies to look into strategic deals during this year.
As a result, we expect the next year to be a busy year for M&A across a variety of sectors. The industrial sector will continue to be an important target, especially for acquisitions aimed at cutting-edge technologies such as EVs and cloud solutions. We also anticipate the energy change to accelerate and businesses in this sector will likely seek to acquire additional assets and capabilities to help them succeed.
After a major downturn for the tech industry http://thisdataroom.com/how-virtual-data-room-vdr-benefit-ma-deals/ in 2022, we are expecting a rebound in 2024, because artificial intelligence (AI) and its related applications, such as generative AI, catch the attention of businesses, investors and the general public. Additionally the healthcare industry continues to be a major focus of M&A as companies and investors attempt to bring niche medtech assets to market.
