Merger and Acquisition Activity in 2024 Surpasses 2023: Expert Insights and Market Trends
The mergers and acquisitions market is showing signs of recovery in 2024, with overall deal value rising to $535 billion in the first five months of the year, a nearly 30% increase compared to the same period in 2023. PwC Private Equity Lead & Deputy Deals Leader Kevin Desai joined Asking For A Trend to provide insight into the M&A market and what could come next after a period of uncertainty.
Desai highlighted several factors driving the increase in dealmaking activity, including rising executive confidence, stabilizing inflation, and a renewed focus on cash flow. He noted that deal volume is starting to resemble pre-pandemic levels, indicating a return to normalcy in the market.
Looking ahead, Desai mentioned that the upcoming elections and a potential interest rate cut could impact M&A activity. He emphasized the importance of clarity around interest rates for financial and private equity investors, as well as the potential impact of election-related uncertainty on dealmaking.
Desai also discussed the role of AI and energy transition opportunities as catalysts for M&A activity, highlighting the importance of technology in transforming businesses and driving new investment theses.
As the year progresses, Desai expects a rebound in M&A activity, with a strong end to Q4 following potential election-related softness in September and October. He emphasized the need for certainty and clarity in economic policies and regulatory environments to boost confidence among dealmakers.
In addition to M&A trends, Desai also touched on the increase in IPO volumes in 2024, with high-quality assets accessing the capital markets and driving confidence in the investment community.
Overall, the outlook for the M&A market in 2024 is positive, with signs of recovery and increased activity compared to the previous year. For more expert insights and the latest market action, viewers can watch the full episode of Asking For A Trend with Kevin Desai.