The big-deal arrogance of the global M&A market is waning while rates remain high in 2024.

The foundation of mergers and acquisitions (M&A) is confidence. Additionally, anticipation of up to six interest rate reduction in Q1 contributed to the boost in U.S. confidence; however, the Fed has maintained its rate goal at 23-year record highs, and forecasts have decreased to maybe two or even zero rate cuts by year's end. After a bold foray into dealmaking in 2024, this has led to a small retreat.

Per Mergermarket data, global M&A activity is up 17% year over year. With a number of larger-cap listed deals, the first half of the year got off to a roaring start as strategic investors used their share capital to try and push stagnant share prices in their quest for growth.Four of the targets for the top ten largest agreements in the first half of 2024 included stock swaps, while nine of the targets had U.S. headquarters. Large-cap transaction flow decreased as interest rate forecasts descended into a more moderate range. Only two of the top ten transactions were revealed in Q2: Silverlake's $14.9 billion offer for media conglomerate Endeavour Group and ConocoPhillips' $23.1 billion all-stock purchase of Texas-based upstream oil giant Marathon Oil in May.