Despite the global slowdown in economic growth and the high interest rates that have put the pressure on deals through 2022 many companies consider M&A as a vital path towards growth. Our most recent North American CFO Signals study revealed that a significant portion of respondents believed between 1to 10 percent of their revenue growth could be attributed to M&A deals.
The recent stability of inflation and interest rates is a sign that the worst might be over. This combined with renewed confidence in the US economy and the easing of fears of a recession should hopefully spur more companies to look at strategic deals this year.
We anticipate that the next year will be a busy one for M&A across a wide variety of industries. The industrial sector is expected to remain a prime target, especially for acquisitions targeting innovative technologies like EVs and cloud-based solutions. We also expect that the shift to energy will be accelerated and that companies in this industry might seek to acquire assets and capabilities to help them achieve success.
After experiencing a major downturn in 2022, we are anticipating a recovery in the tech sector in 2024, as artificial intelligent and its related applications (like artificial intelligence that is generative) capture the attention of companies and investors as well as the general public alike. The healthcare sector is an important focus for M&A, since companies and investors compete to bring innovative medical technologies to the market.
