Many companies still see M&A deals as a crucial route to growth despite the global economic slowdown. High interest rates will continue to put pressure on dealmaking through 2022. In fact, our most recent North American CFO Signals survey revealed that more than half of all respondents expected between 1 percent and 10 percent of their business’s growth this year from M&A transactions.

While a myriad of industry-related challenges have slowed deal activity since peaking mid-2022 The recent stabilization of inflation and interest rates is a positive indication that the worst may be over. This, together with the http://thisdataroom.com/virtual-data-room-tool-for-legal-professionals/ renewed confidence in the US economic system and the ease of fears of a recession, will hopefully encourage more companies to pursue strategic deals in the coming year.

As a result, we expect the upcoming year to be an active one for M&A across a variety of sectors. The industrial sector is expected to remain a top target, particularly for acquisitions focusing on innovative technologies like EVs or cloud-based solutions. We also believe that the energy transition will accelerate and that companies in this sector may be looking to acquire assets and capabilities that could help them achieve success.

After a downturn in the tech industry in 2022, we are expecting growth in 2024 since artificial intelligence (AI) and its related applications, such as generative AI, catch the attention of businesses, investors and the general public. Additionally the healthcare sector continues to be a major focus of M&A as investors and companies compete to bring niche medical tech assets to market.