Despite the global slowdown in economic growth and high interest rates that are putting pressure on dealmaking until 2022, many companies continue to think of M&A as a key route towards growth. Our most recent North American CFO Signals study revealed that a significant portion of respondents believed that between 1% and 10 percent of their revenue growth could be due to M&A deals.

While a myriad of challenges in the industry have slowed deals since peaking in mid-2022 The recent stabilization of interest rates and inflation is a good sign that the worst is likely to be over. This, along with the rising confidence in the US economic system and the dissipation of concerns about a possible recession, could encourage more companies to look into strategic deals this year.

We anticipate that the upcoming year will be a busy year for M&A across a variety of industries. Industrial companies will remain a major target, particularly for acquisitions aimed at cutting-edge technologies like EVs and cloud solutions. We also anticipate that the energy transition will accelerate and that companies in this sector may seek to acquire assets click over here and capabilities to aid them in their success.

After a decline in 2022, we expect to see a recovery in the tech industry in 2024, as artificial intelligence and its related applications (like generative AI) capture the attention of businesses, investors, and the general public alike. The healthcare sector is an important focus for M&A, as both companies and investors vie to bring niche medtech products to market.