M&A Outlook for 2024 and Market Dynamics

This report presents the M&A Outlook for 2024, detailing the trends and dynamics observed in the mergers and acquisitions market throughout 2023. The document outlines the decline in global M&A activity by 23% in deal value, with a more modest decrease of 16% in the number of deals, reflecting a shift towards smaller transactions. It explains the impact of ongoing headwinds such as rising interest rates, inflation, and geopolitical tensions on dealmaking, leading to a more cautious approach among buyers and sellers. The report highlights the popularity of divestitures, carve-outs, and spinoffs as strategic transaction structures to unlock value amid challenging conditions. It also discusses the rise of add-on acquisitions and growth equity transactions, emphasizing their role in navigating the current financing environment. The document concludes with insights into innovative financing tactics being employed by dealmakers to address the financing gap, including the use of alternative funding sources and creative transaction structures.