Upcoming Deal Trends

Despite the global slowdown in economic growth and high interest rates that have put pressure on dealmaking throughout 2022 many companies consider M&A as a key route to increase their growth. Our latest North American CFO Signals study found that nearly half of respondents believed between 1% and http://thisdataroom.com/everything-to-make-an-informed-choice-with-data-rooms-comparison 10 percent of their revenue growth could be attributed to M&A deals.

Although a range of industry-related challenges have slowed deal activity since peaking mid-2022 the recent slowing of interest rates and inflation is a positive sign the worst is likely to be over. This combined with renewed confidence in the US economy and easing the fear of a recession will hopefully spur more companies to pursue strategic deals this year.

We expect the next year to be a busy year for M&A in a variety sectors. The industrial sector is expected remain a top priority, particularly for acquisitions that focus on cutting-edge technologies like EVs or cloud-based solutions. In addition, we anticipate the energy transition to accelerate, and firms in this field are likely to seek additional assets and capabilities to help them succeed.

After a severe downturn for the tech industry in 2022, we are expecting an increase in 2024 because artificial intelligence (AI) and its associated applications, such as generative AI, catch the attention of business owners, investors, and the public. The healthcare industry is an important focus for M&A, as both companies and investors vie to bring medical devices that are niche to the market.