Many companies see M&A deals as a crucial path to growth even with the global economic slowdown. A high rate of interest will continue to put pressure on dealmaking through 2022. In fact, our latest North American CFO Signals survey revealed that more than half of respondents predicted that between 1% and 10 percent of their growth this year to result from M&A transactions.
The recent stability of the rate of inflation and interest rates is a sign that the worst might be over. This, in conjunction with the rising confidence in the US economic system and easing of fears of a possible recession, will hopefully encourage more companies to look into strategic deals this year.
We expect that the coming year will be a busy year for M&A across a wide variety of sectors. The industrial sector will continue to be the most sought-after target, especially for acquisitions aimed at innovative technologies like EVs or cloud solutions. We also anticipate the energy transition to accelerate, and businesses in this sector will likely be looking to acquire additional assets and capabilities to enable them to succeed.
After a slowdown in 2022, anticipate an improvement in the tech industry in 2024, as artificial intelligence and its applications (like generative AI) capture the attention of companies, investors, and helpful site https://thisdataroom.com/strategies-with-secure-data-room/ the general public at large. In addition the healthcare industry remains a major focus of M&A as companies and investors are racing to bring niche medical technology assets to the market.