Upcoming Deal Trends

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Many companies continue to see M&A transactions as an important avenue to increase their growth even with the global economic slowdown. Inflation rates that are high will continue to pressure deal-making until 2022. In fact, our latest North American CFO Signals survey revealed that nearly half respondents anticipated that between one 10% and 10 percent of their business’s growth this year to result from M&A transactions.

Although a range of challenges in the industry have slowed deal activity since peaking mid-2022 the recent stability of interest rates and inflation is a good sign that the worst is likely to be over. This, in conjunction with the rising confidence in the US economic system and easing of fears of a possible recession, will hopefully encourage more companies to look into strategic deals during this year.

Therefore, we anticipate that the coming year will be a busy year for M&A in a variety sectors. The industrial sector is expected to remain a top priority, especially for acquisitions targeting innovative technologies such as electric vehicles and cloud-based solutions. We also anticipate the energy transformation to accelerate, and businesses in this sector will likely seek to acquire additional assets and capabilities to help them succeed.

After a severe decline in 2022, we expect to see a rebound for the tech industry in 2024, as artificial intelligent and its related applications (like generative AI) capture the attention of companies and investors as well as the general public at large. Additionally, the healthcare sector continues to be a major focus of M&A as companies and investors attempt to bring niche medtech assets to market.