Mergers & Acquisitions (M&A) Trends for 2024

Whilst Mergers & Acquisitions (M&A) activity over recent years has been against a backdrop of macroeconomic and geopolitical challenges, the outlook for 2024 is looking very positive with an anticipated increase in deal activity on a national and global scale.

Inflation on the decline

The most notable macroeconomic shift has been the gradual decline in inflation and much anticipated associated interest rate decreases, leading to a greater risk appetite for financing both small and large transactions.

The rising cost of living

It is a justifiable assumption that the rising cost of living and a general downturn in financial markets in recent years have led to many business owners deferring their exit strategy plans.

With the improvements in the macroeconomic environment, it is anticipated that these deferred deals will come to fruition in 2024, driving a rise in deal activity across all sectors.

A different macroeconomic climate

Whilst 2024 looks like a positive year for deal volume, we must be conscious of the different macroeconomic climate in which we enter 2024.

Are interest rates affecting valuations?

Interest rates are some of the highest we have seen in many years; debt funding for any transaction will cost far more in today than it would have several years ago. This may have a downward impact on valuations, although we have only seen a very modest decrease in this regard in the last 12 months.

The importance of experienced advisers and strategic buyers

However, any suggestion of pressure on valuations does mean engaging with experienced advisors to present your business in the most attractive light. Finding a strategic buyer who will pay a premium price will also be more important than ever to meet the business owners' aspirations.

If you’re considering selling your business in 2024 and want to understand how much your company might be worth, please get in touch to discuss how we can help. You can also try our free Business Valuation Calculator to gain a rough idea of what your business may be worth.