Find out how M&A activity held up in 2023 and discover the driving forces influencing dealmaking. How will they impact the M&A market in 2024?
“There needs to be a change in both the seller and buyer mindsets. Sellers need to be more realistic, while buyers need to be less greedy. They need to look at today’s market and future cash flows to get closer on deal terms.”
“Focus on corporate clarity is expected to continue into next year. Strategies that result in the creation of 'pure play' entities typically create value for shareholders.”
“Domestic activity has been more resilient than cross-border deals. Geopolitical challenges in Europe are impacting M&A volumes. Meanwhile, North America remains resilient, and deals are still getting done in APAC including Australia, India, Korea and Japan.”
“Litigation is no longer a last option. Over the last few years, it’s become a strategy, which in turn is driving up the cost of doing deals.”
“Finding risk-less opportunities will be difficult. Private equity firms will have to do deals based on non-quantifiable factors like courage and conviction.”
“For boards and CEOs, there is considerable uncertainty in today’s market. We can provide the insights and judgement to help you evaluate opportunities and add strategic value to your business.”
Dissect the market drivers and inhibitors to discover what’s shaping current M&A activity and where momentum is building.
Large cash balance sheets and need for growth provide opportunity for strategics.
Corporate clarity, carveouts, divestitures
Strategic focus and corporate clarity are valued and rewarded by investors.
Activists continue to focus on M&A as a solution for undervaluation where actionable.
Valuation mismatch between public & private markets
Companies that are undervalued in public markets have potential for higher valuation in the private markets.
Financial sponsor activity
Decade low levels of activity, pressure to return DPI and record dry powder will drive sponsor activity.
De-globalization, de-dollarization and depopulation point to higher interest rates; slightly higher or more volatile inflation; slower growth, especially in developing economies; and lower corporate profits.
Ongoing conflicts in Europe and the Middle East will test board and management team’s confidence.
The regulatory approval process has provided an additional layer of complexity for firms to navigate.
Countries making up over 50% of global GDP will undergo decisive elections this year. The results will both reflect and impact a precarious geopolitical and economic environment.
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