Many companies continue to see M&A deals as a crucial way to grow, even in the face of a slowing global economy. The high interest rates will continue to pressure deal-making until 2022. In fact, our most recent North American CFO Signals survey revealed that more than half of respondents believed that between 1 10% and 10 percent of their growth this year could come from M&A transactions.
Although a number of industry-related challenges have slowed deal activity since peaking mid-2022 the recent slowing of inflation and interest rates is a good sign that the worst is likely to be over. This, along with renewed confidence in the US economy and lessening helpful site https://thisdataroom.com/strategies-with-secure-data-room/ fears of a recession will hopefully spur more companies to look at strategic deals this year.
We anticipate that the upcoming year will be a busy year for M&A across a broad range of industries. The industrial sector is predicted to remain a top target, particularly for acquisitions that focus on cutting-edge technologies such as EVs and cloud-based solutions. We also anticipate the energy transition to accelerate, and businesses in this sector are likely to seek additional assets and capabilities that will help them succeed.
After a downturn in the tech industry in 2022, we are expecting an increase in 2024 as artificial intelligence (AI) and its related applications, such as generative AI, catch the attention of business owners, investors as well as the general public. In addition, the healthcare sector is a constant focus of M&A as companies and investors are racing to bring niche medical technology assets to market.