Acquisitions & Mergers

Corporate Leaders Appear Ready To Make More Deals in 2024

By - 28 Jan 2024 09:12 PM

After high interest rates and regulatory scrutiny kept some corporate leaders from making deals in 2023, executives and analysts are expecting a rebound in mergers & acquisition (M&A) activity this year. A Deloitte survey showed that 83% of corporate and private equity leaders expected an increase in mergers and acquisitions (M&A) this year, with almost as many responding that they expect the volume of their own organizations' deal-making to grow.

The executive sentiment recorded by Deloitte lines up with a forecast from Morgan Stanley Investment Banking that concluded M&A activity was positioned to increase in 2024 after sinking in 2023 as inflation, high interest rates and increased regulatory scrutiny all contributed to stifle deal-making last year. Data from FactSet showed M&A activity was down 14.1% in December from the prior month, although spending on deals jumped more than 40% in the month. Only four of 21 tracked sectors had year-over-year M&A growth during the year’s fourth quarter, the report said.M&A activity can be beneficial for investors by either pressing the share price higher for companies that are acquired, or by quickly adding scale, volume, or market share to corporations that take over smaller companies.