Upcoming Deal Trends for 2024

The deal market in 2024 is likely http://thisdataroom.com/how-virtual-data-room-vdr-benefit-ma-deals to see a return from the challenges of 2023. Inflation has been slowed, and could even be on the verge of declining the interest rates have remained stable (though they may not be back to pre-pandemic levels) Private credit is increasingly available to finance more types of deals and traditional equity markets have gained ground, reaching record highs.

However, a range of factors will hinder deal-making. The slowdown in M&A is largely due capital limitations. Rising interest rates have shifted the economic landscape and made it less appealing to invest in growth through acquisitions or new investments. This is particularly relevant for the US which accounts for a significant proportion of global deal value with two thirds of the top 100 deals in 2021 involving an US company or targets.

A second issue is that increased scrutiny by regulators is limiting M&A. Concerns about antitrust, national security and other issues are putting greater scrutiny on larger deals and restricting the possibilities for industry consolidation. The trend is expected to continue until 2024.

Third, the focus of generative AI (GIA) will result in more M&A to develop capabilities. Companies that don’t have the skills or time horizon to build GIA capabilities internally will resort to M&A to acquire them. In the end, the environmental social and governance agenda is gaining traction among CEOs. They are increasingly looking to increase ESG initiatives by acquiring companies that will aid them in achieving their growth, earnings, and valuation goals.