Despite the global economic slowdown and high interest rates that put pressure on dealmaking until 2022 Many companies continue to believe that M&A as a vital path to increase their growth. Our latest North American CFO Signals study showed that nearly half the respondents believed between 1 and 10 percent of their company’s revenue growth could be due to M&A deals.
The recent stability of inflation and rates of interest is an indication that the worst could be over. This, along with renewed confidence in the US economy and the easing of fears of a recession should hopefully inspire more companies to look at strategic deals this year.
As a result, we anticipate that the coming year will be a busy year for M&A across a range 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 believe that the energy transition to accelerate, and that companies operating in this sector may look to acquire assets and capabilities that could assist them in achieving their goals.
After a severe decline in 2022, we anticipate a recovery in the tech sector in 2024, as artificial intelligence and its applications (like generative AI) capture the attention of companies as well as investors and general public. In addition, the healthcare sector is a constant aspect of M&A as investors and companies are racing to bring niche medical technology assets to market.
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