Many companies see M&A deals as a crucial way to grow regardless of the global slowdown in economic growth. High interest rates will continue to put pressure on dealmaking through 2022. In fact, our most recent North American CFO Signals survey showed that nearly half of respondents believed that between 1 10 and 10% of their company’s growth this year to result from M&A transactions.
The recent stabilization of inflation and rates of interest is an indication that the worst may be over. This, along with the renewed optimism in the US economic system and easing of fears of a recession, should hopefully spur more companies to pursue strategic deals in the coming year.
In the end, we expect the next year to be a thriving year for M&A across a variety of sectors. The industrial sector is expected remain a top target, particularly for acquisitions focusing on innovative technologies like EVs or cloud-based solutions. We also expect the http://thisdataroom.com/how-virtual-data-room-vdr-benefit-ma-deals/ energy transition to accelerate, and that businesses in this sector may seek to acquire assets and capabilities that will help them succeed.
After a major downturn for the tech industry in 2022, we are expecting an increase in 2024 as artificial intelligence (AI) and its related applications, like generative AI, capture the interest of businesses, investors, and the public. Healthcare is also a major area of focus for M&A since companies and investors compete to bring medical devices that are niche to the market.