Surge in Deal Activity Brightens MA Outlook for 2024
Positive Outlook Amid Economic Uncertainty
Despite ongoing macroeconomic challenges, the mergers and acquisitions (MA) market is poised for a surge in activity in 2024, driven by a sharp increase in deal volume, particularly for larger transactions. This optimistic outlook is reflected in the recent KPMG 2024 MA Survey, which reveals that a majority of executives (75%) plan to pursue at least one deal in the coming year.
Key Trends for Dealmakers in 2024
Dealmakers are preparing for various important trends in the next year. These include the following:
1. Focus on Technology and Innovation
Technology is transforming industries, and companies are increasingly seeking to acquire capabilities in areas such as artificial intelligence (AI), machine learning (ML), and cloud computing. This trend is expected to continue to drive MA activity in 2024.
2. ESG Considerations
Environmental, social, and governance (ESG) factors are becoming increasingly important for businesses. Investors and consumers are demanding greater transparency and accountability from companies, which is leading to an emphasis on ESG-related acquisitions.
3. Regulatory Scrutiny
While the macroeconomic climate is stabilizing, concerns about inflation, monetary policy, and regulatory issues remain. Dealmakers will need to navigate these uncertainties carefully to ensure successful transactions. In conclusion, the MA outlook for 2024 is promising, with executives expressing optimism and planning for a surge in deal activity. By staying abreast of key trends and mitigating risks, dealmakers can capitalize on the opportunities presented by this dynamic market.
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