The deal market in 2024 is likely to recover from the issues that it faced in 2023. The 2023 deal market is likely to see an increase in activity following the challenges of 2023.

Deal making is hampered by a variety of reasons. The slowdown in M&A is largely due to capital restrictions. The economic landscape has changed because of rising interest rates, which makes it less attractive to invest in growth through acquisitions and new investments. This is particularly applicable to the US as it accounts for the majority of global deal values, with two-thirds of the top 100 deals of 2021 involving a US company as an auctioneer or a target.

The second reason is that increased scrutiny from regulators is stifling M&A. Concerns about antitrust, national security and other factors are putting greater scrutiny on larger deals and limiting the potential for industry consolidation. The trend is expected to continue through 2024.

Third, the focus of generative AI (GIA), will be driving more M&A to develop capabilities. M&A will be utilized by companies that do not have the time or http://thisdataroom.com/everything-to-make-an-informed-choice-with-data-rooms-comparison/ resources to build GIA capabilities internally. In the end, the environmental social and governance agenda continues to gain momentum with CEOs. Increasingly, they will seek to strengthen ESG initiatives by acquiring companies that can help them achieve their earnings, growth and valuation goals.