The M&A landscape has experienced significant fluctuations, marked by a pandemic-driven downturn in 2020, a record-breaking recovery in 2021, and a steep decline in 2023. Despite challenges, dealmakers approach the future with optimism. Global M&A activity dropped 16% in 2023, contrasting with the S&P 500’s 24% climb. Programmatic M&A, characterized by consistent deals, outperformed other strategies, emphasizing its resilience. Cash reserves and a potential return of private equity investors contribute to market stability. Geopolitical concerns, though, remain prominent. Different regions had varied experiences, with the Americas leading in M&A activity, EMEA facing challenges, and APAC showing signs of improvement. The fourth quarter of 2023 witnessed a surge in global M&A activity, indicating a potential recovery. CEOs are preparing for a possible uptick in transactions by re-evaluating M&A themes, addressing geopolitical risks, and exploring alternative deal structures. The future hinges on adapting strategies to navigate dynamic economic conditions and fostering resilience in the M&A landscape.

Source :

https://www.mckinsey.com/capabilities/m-and-a/our-insights/top-m-and-a-trends-in-2024-blueprint-for-success-in-the-next-wave-of-deals#/